Silver price (XAG/USD) surrenders its intraday gains and falls slightly below $28.00 in Tuesday’s New York session. The white metal drops after the release of the better-than-expected United States (US) JOLTS Job Openings data for June. Fresh job vacancies came in higher at 8.18 million against expectations of 8.03 million but were lower than the prior release of 8.23 million, downwardly revised from 8.14 million.

Upbeat US JOLTS Job Openings data has pushed the US Dollar (USD) higher. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, jumps to near 104.80. 10-year US Treasury yields rebound to near 4.18%.

Meanwhile, the major trigger for the Silver price will be the interest rate decision by the Federal Reserve (Fed), which will be announced on Wednesday.

In the monetary policy meeting, investors expect that the Fed will decide to leave interest rates unchanged in the range of 5.25%-5.50%. The Fed is also expected to deliver a dovish guidance on interest rates.

According to the CME FedWatch tool, 30-day Federal Fund Futures pricing data shows that the central bank will reduce interest rates by 25 basis points (bps) from their current levels in the September meeting. The data also shows that there will be two rate cuts instead of one as projected by policymakers in the latest Fed dot plot.

Silver technical analysis

Silver price trades back and forth near $28.00. The near-term outlook of the Silver price turns bearish after a breakdown of the Double Top formation below June 26 low near $28.60 on a daily timeframe. A breakdown of the aforementioned chart pattern results in a bearish crossover. The overall trend of the Silver price is bearish as it establishes below the 50-day Exponential Moving Average (EMA), which trades around $29.35.

The 14-day Relative Strength Index (RSI) shifts into the bearish range of 20.00-40.00, suggesting that a bearish momentum is intact.

Silver daily chart

(Click on image to enlarge)

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