Silver Price Forecast: XAG/USD faces pressure near $24 as US Dollar refreshes weekly high

Silver price (XAG/USD) drops gradually after failing to sustain above the $24.00 resistance in the early New York session. The white metal faces pressures as investors rush for the US Dollar. The appeal for the US Dollar Index (DXY) improves as investors turn cautious ahead of the United States Manufacturing PMI to be released by the Institute of Supply Management (ISM) and the labour market data.

The S&P500 is expected to open on a negative note, considering weak overnight futures. Market mood turns downbeat amid a data-packed week. The 10-year US Treasury yields climb to near 3.96% as the risk-appetite of the market participants fade. The USD index refreshes weekly high near 102.00 amid improvement in demand for safe-haven assets.

Going forward, investors will focus on the Federal Open Market Committee (FOMC) minutes, which will be published on Wednesday. The FOMC minutes for December monetary policy meeting will provide a detailed explanation behind third consecutive unchanged interest rate decision by the Fed. Apart from that, guidance about interest rates for 2024 will be keenly watched.

On the economic data front, the ISM Manufacturing PMI for December is seen higher at 47.1 vs. the prior release of 46.7. Meanwhile, JOLTS Job Openings were higher at 8.85M in November against 8.733M jobs posted earlier.

Silver technical analysis

Silver price forms a Head and Shoulder chart pattern on a two-hour scale, which indicates a prolonged consolidation. The chart pattern would get triggered after a breakdown below the crucial support of $23.60. The asset struggles to sustain above the 20-period Exponential Moving Average (EMA), which trades around $24.00.

The Relative Strength Index (RSI) (14) oscillates in the 40.00-60.00 range, which indicates a consolidation ahead.

Silver two-hour chart