- Summary:
- The silver price momentum has been threatened by the US and China drawing near the start of trade communication, but some support will remain.
The silver price expanded its collapse on Monday, dropping 0.1% to trade at $ 33.05 in the European session. The decline was established in improving emotion in the broader financial market, which reduced demand for safe possession of haven. However, the momentum underlying silver price is still touched, with greyish metal up to 14.4% year-to-date and gained 1.1% in the last five sessions.
The commodity is likely to remain covered as US hints in exploring trade communication in China. Multiple news sources reported last week that China is considering the release of some US goods from 125% tariffs imposed on US goods. While the exact list of goods has not yet appeared, such a move can detect Trump management to soften its stance in China and start steps to lowering tariffs by 145%.
China has lowered recent US claims that the two countries are actively employed in resolving trade disadvantages. On Monday, the Ministry of Interaction with China's foreigner refused a Times magazine interview where Trump claimed that he recently called for a phone call with his Chinese counterpart Xi Jinping. These developments point to an existing global economic risk are likely to provide silver price support in the near future.
In the medium-term, the federal reserve rate decision of the Federal Reserve on May 7 may be the most fruits under Trump management. An adjustment of the current 4.25% -4.50% rate can inject large volatility into the Xagusd pair.
Prediction of silver price
The momentum in the silver price of the seller's signal control if the objection continues to $ 33.11. Metal is likely to find initial support at $ 32.91. Momentum can break below the level that if the seller expands their control. However, an extended control of the sellers can send less prices and try a second support at $ 32.75.
Alternatively, destroying the above $ 33.11 signaled the onset of bullishness. If that happened, the coin would probably find the first obstruction to $ 33.26. However, a stronger momentum will go above that level, and the downside narrative is not valid at that point. Moreover, such a momentum can expand the acquisitions to test $ 33.47.
