Silver Price Forecast: XAG/USD stabilizes below $24.00 as USD Index approaches north moderately

• Silver price is consolidating below $24.00 as the USD Index remains elevated.
• A cautious market mood has been observed in the FX domain as the US markets will open after an extended weekend.
• Distinct responses to Fed interest rate guidance have kept the USD Index quiet.

Silver price (XAU/USD) has shifted its auction below the crucial support of $24.00 in the early European session. The white metal has shown a steady downside move amid an absence of potential economic indicators this week.

S&P500 futures have carry-forwarded losses added in Asia to the European session. A cautious market mood has been observed in the FX domain as the US markets will open after an extended weekend. The US Dollar Index (DXY) has faced nominal barriers around 102.60, however, the upside move has not faded yet. The US Treasury yields are also showing resilience. The 10-year US Treasury yields have climbed strongly above 3.8%.

Distinct responses to Federal Reserve’s (Fed) interest rate guidance have kept the USD Index quiet. The street is hoping that the bleak US economic outlook might force the Fed to shift its stance to only one rate hike this year. US labor market conditions have released some heat as weekly jobless claims are consistently increasing and the Unemployment Rate has climbed to 3.8%.

Chicago Fed Bank President Austan Goolsebee commented that there is conflicting data on whether we are too hot or whether we have done enough. He further added labor market is too hot but working hours are declining.

Silver technical analysis

Silver price has faced selling pressure while attempting to climb into the Rising Channel chart pattern around $24.24 on a four-hour scale. The white metal is hovering near the 200-period Exponential Moving Average (EMA) around $23.90, indicating a sheer decline in volatility.

Also, the Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, portraying a lackluster performance.

Silver four-hour chart