Silver Price Analysis: XAG/USD corrects to near $24 amid a thin-trading week

Silver price falls to near $24.00 in a shortened week.
The US Dollar has printed a fresh five-month low near 101.40.
The 61.8% Fibo retracement acted as a strong barrier for the Silver price.

Silver price (XAG/USD) extends its correction to near $24.00 as trading volume has dropped significantly amid festive market mood. The white metal faces selling pressure despite the Federal Reserve (Fed) is expected to start lower interest rates sooner than earlier anticipated.

The market mood is quite as market participants are expected to build fresh positions from next year. The US Dollar Index (DXY) has refreshed its five-month low near 101.40 as investors hope that more-than-projected decline in the United States core Personal Consumption Expenditure (PCE) price index may force Fed policymakers to lean towards early rate cuts.

Investors hope that the US inflation is in a clear downtrend. This has weighed heavily on the US Dollar. This week, the USD Index may face more pressure amid absence of 1st-tier economic events. Meanwhile, investors will focus on the weekly Initial Jobless Claims data, which will be published on Thursday.

Meanwhile, expectations of lower interest rates have propelled home prices in the US economy. The Federal Housing Finance Agency (FHFA) report showed that prices of residential properties grew 6.3% in October on a yearly basis.

Silver technical analysis

Silver price drops after facing selling pressure near the 61.8% Fibonacci retracement (plotted from December 3 high at $25.90 to December 13 low around $22.60) at $22.60 on a two-hour scale. The asset has dropped below the 50-period Exponential Moving Average (EMA), which trades around $24.20.

The Relative Strength Index (RSI) (14) has slipped below 40.00, which indicates that the asset is not bullish anymore.