Silver Price Forecast: XAG/USD wobbles below $33 as investors seek development in US-China trade

• Silver price consolidates around $32.50 as investors look for fresh development in trade talks between the US and China.
• The White House has expressed confidence in the US-China trade deal.
• The tussle between Trump and Fed Powell keeps the US Dollar on the backfoot.

Silver price (XAG/USD) trades sideways around $32.50 during European trading hours on Tuesday. The white metal has turned sideways over the last three trading days as investors look for fresh development in trade relations between the United States (US) and China.

In the second week of this month, US President Donald Trump announced a sudden 90-day pause in the execution of reciprocal tariffs but kept enormous duties on China for retaliation by imposing similar levies on imports from the US.

Meanwhile, Washington has expressed optimism over the US-China trade deal. "We're confident it will work out with China," US Commerce Secretary Howard Lutnick said over the weekend.

Still, investors are cautious over the US-China trade relations as the fight between Trump and China is more of a "dignity" issue than a "level of tariffs" issue. The scenario of a tussle between the US and China for the longer term will be favorable for safe-haven assets, such as Silver. Historically, precious metals perform strongly in times of heightened global economic tensions.

Last week, White House press secretary Karoline Leavitt said that the President is open to a trade deal with Beijing, but it should make the first move. "The ball is in China's court: China needs to make a deal with us, we don't have to make a deal with them," Leavitt said, Reuters reported.

Meanwhile, the deepening feud between Donald Trump and Federal Reserve (Fed) Chair Jerome Powell over the interest rate policy has battered the US Dollar (USD) badly. Technically, a lower US Dollar makes the Silver price a value bet for investors.

Silver technical analysis

Silver price trades back-and-forth in a range between $32.08 and $33.12 since Wednesday. The white metal turns sideways after a strong upside move since April 7. The 20-day Exponential Moving Average (EMA) near $32.00 continues to provide support to the Silver price.

The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, indicating a volatility contraction.

Looking up, the March 28 high of $34.60 will act as key resistance for the metal. On the downside, the April 111 low of $30.90 will be the key support zone.

Silver daily chart