Silver (XAG/USD) continued its downward trajectory on Monday as investor appetite for riskier assets strengthened, buoyed by renewed optimism over a potential China-US trade agreement. The precious metal, which had recently retreated from mid-October highs above $54.00, is now edging closer to the $47.00 support area.
A brighter market mood, fueled by upbeat comments from US President Donald Trump expressing confidence in reaching a “good deal” with Chinese President Xi Jinping, weighed on traditional safe-haven assets such as silver and gold. Investors have shifted focus toward equities and risk-sensitive currencies, further pressuring the white metal.
Technical analysis: bearish H&S pattern points to deeper losses
From a technical perspective, XAG/USD remains under bearish control after breaking below the neckline of a Head & Shoulders formation near $50.70. The pattern’s projected downside target aligns with the 61.8% Fibonacci retracement level of the September–October rally, around $46.35.
The $46.00–$46.35 area also coincides with prior consolidation zones from late September and early October, making it a key support region to monitor. A decisive break below this range could expose the next support at the 76.2% Fibonacci retracement, near $44.00.
On the upside, initial resistance appears around $49.40—corresponding to the October 22–23 highs—followed by the neckline near $51.00 and the October 20 peak at $52.75. A sustained recovery above these levels would be required to negate the bearish outlook.
