• Silver price drops on remarks by a Fed official, talking down rate cuts.
• US economic data remains solid, a tailwind for the Greenback and headwind for precious metals prices.
• IF XAG/USD achieves a daily close below $24.00, that would pave the way to test the 200-DMA.

Silver price retreats by 0.78% and dips below the $24.00 figure on Friday as the Greenback (USD) remains bid during the North American session. A Federal Reserve official pushing back against a premature shift to ease policy and firm US Treasury bond yields is a headwind for the grey metal. The XAG/USD trades at $23.97 after hitting a daily high of $24.28.

Silver’s uptrend remains intact, but downside risks remain

Following last Wednesday's Chair Jerome Powell press conference, the New York Fed President John Williams was called to do damage control. Williams said, “We aren’t really talking about rate cuts,” adding that a rate cut in March is “premature.” That said, US Treasury bond yields erased is losses, and the Greenback rose. Therefore, XAG/USD dipped below $24.00 as traders also booked profits ahead of the weekend.

On the data front, US Industrial Production slowed by 0.2%, missed forecasts but exceeded November’s .0.9% plunge. S&P Global revealed that business activity improved, lifted by the services sectors as manufacturing continues to contract. This depicts the US economy remains solid, despite 525 basis points of tightening by the Fed.

Another driver that weighed in XAG/USD was an uptick in US real yields, which dropped toward 1.67%; before recovering toward 1.70%. Additionally, the US Dollar Index (DXY) which tracks the currency’s performance against a basket of six other rivals, advanced 0.51%, sits at 103.47