Silver Price Forecast: XAG/USD trades below $67.00 amid mixed setup as US NFP looms

Silver (XAG/USD) struggles to maintain its upward momentum on Friday, falling below $67.00 amid mixed market sentiment as Wall Street braces for the release of the United States Nonfarm Payrolls (NFP) report. Currently down 0.30% for the day, the precious metal remains under pressure as traders anticipate the economic data release.

With expectations fading for an interest rate hike by the U.S. Federal Reserve (Fed) in September and falling U.S. bond yields, the U.S. Dollar (USD) is hovering near its lowest level in over a week, potentially benefiting USD-denominated commodities including XAG/USD. However, technical indicators suggest caution for bullish traders, as the price trades below both the 200-day Simple Moving Average (SMA) at $72.84 and a mid-range Fibonacci retracement level during the May-July decline.

Mixed momentum indicators, with the Relative Strength Index in the mid-50s and MACD slipping into negative territory, hint at waning upside pressure, validating a cautious outlook for the near term. To trigger a potential upside reversal, XAG/USD must surpass key resistance levels at the 38.2% retracement at $67.83, the 50.0% retracement at $71.89, and the 200-day SMA at $72.84.

Conversely, a sustained drop below these levels could expose the 23.6% Fibonacci retracement level at $62.81 and the long-term support at the prior cycle low around $54.69, should selling pressures intensify.