Forecast for Silver Price: XAG/USD corrects from $24.00 as USD Index recovers and US Employment is monitored

After failing to surpass the $24.00 resistance in the Asian session, the Silver price (XAG / USD) has corrected marginally. The precious metal has shown a slight decline in tandem with the US Dollar Index's recovery. (DXY). After establishing a buffer around 102.00, the USD Index has rebounded to near 102.15; however, the downside appears to be favored in anticipation that the Federal Reserve (Fed) will maintain a neutral posture on interest rates at its monetary policy meeting in May.

S&P500 futures are attempting to recoup all of the losses sustained in early Asia. The overall market sentiment is optimistic, so the demand for perceived-risk assets is robust. Prior to the United States Automatic Data Processing (ADP) Employment Change (March) data, which will be released on Wednesday, 10-year US Treasury yields have increased marginally to around 3.43 percent. According to the consensus, the US economy added 205K positions in March, compared to the previous report of 242K.

The need for a halt in the Fed's policy-tightening cycle will increase as a result of fewer job gains following a weaker ISM manufacturing PMI. According to the CME Fedwatch tool, over fifty percent of investors continue to anticipate an additional 25 basis point (bps) rate hike to 5.00-5.25%. However, a significant reorganization is anticipated after the publication of the Employment data.

Monday, Fed Board Governor Lisa Cook stated that the United States has both low unemployment and high inflation. Consequently, the Fed is presently focused on inflation, and the disinflationary process has begun, but we are not yet there. The commentary has provided the US dollar with some support.