Silver Price Forecast: Silver/USD slips as US-China trade truce boosts the dollar

Silver prices fell more than 0.40% by the end of trading on Monday as optimistic news came out of the US and Chinese delegation meeting last weekend, reaching a 90-day tariff reduction agreement, marking the start of negotiations. XAG/USD is trading at $32.56, unchanged as the Asian trading session begins on Tuesday.

XAG/USD Price Prediction: Technical Outlook

Silver prices have been consolidating in a range between $32.00 and $33.00 over the past five trading sessions as geopolitical uncertainty and U.S. dollar volatility have resulted in a lack of momentum among buyers and sellers to push the grey metal either up or down.

As the US dollar rises steadily, XAG/USD may face challenges the 100-day simple moving average (SMA) at $31.86. Once broken, the next support will be the 200-day SMA at $31.25, followed by $31.00.

Conversely, if the XAG/USD pair breaks out of the 50-day SMA at $32.74, the next resistance will be the psychological level of $33.00. Once broken, the next target will be $33.50 and then $34.00.