Silver Price Forecast: XAG/USD recovers to near $49.00 on US-China trade concerns

• Silver price bounces back to near $49.00 on renewed concerns over the US-China trade outlook.
• US President Trump expresses that the meeting with Chinese leader Xi might not happen.
• Investors await the delayed US CPI data for fresh cues on the monetary policy outlook.

Silver price (XAG/USD) rebounds to near $49.00 during the late Asian trading session on Wednesday after attracting bids around the fresh two-week low at $47.53 posted earlier in the day. The white metal has declined almost 12% since Friday, when investors became confident that the United States (US) and China would reach a trade deal soon.

US President Donald Trump has been expressing confidence that Washington and Beijing will reach a fair deal after his meeting with Chinese leader Xi Jinping later this month in South Korea. However, Trump warned on Tuesday that a meeting with Xi might not take place.

"So now we're going to have a fair deal, and I think we're going to have a very successful meeting," Trump said on Tuesday, but later added, "Maybe it won't happen. Things can happen where, for instance, maybe somebody will say, 'I don't want to meet. It's too nasty.'" But it's really not nasty," Yahoo News reported.

Signs of uncertainty over global trade often increase demand for safe-haven assets, such as Silver,

Meanwhile, the broader outlook for the Silver price remains upbeat as the Federal Reserve (Fed) is almost certain to cut interest rates in its policy meeting next week. Lower interest rates by the Fed bode well for non-yielding assets, such as Silver.

Ahead of the Fed's meeting, investors will focus on the delayed US Consumer Price Index (CPI) data for September, which will be released on Friday.

Silver technical analysis

Silver price has corrected significantly from its all-time high around $54.50 posted on Friday. The near-term trend of the white metal has become uncertain as it struggles to return above the 20-day Exponential Moving Average (EMA) slopes higher, which trades around $49.04.

The 14-day Relative Strength Index (RSI) falls below 60.00, suggesting that the bullish momentum has been ended for now.

Looking down, the Silver price could slide further towards the October 2 low of $45.90 and the September 25 low of $43.78 if it breaks below the intraday low of $47.53.

On the upside, the precious metal could return to the all-time high of $54.50 if it breaks above the October 21 high of $52.71.

Silver daily chart