Silver Price Forecast: XAG/USD hits fresh lows near $47.30 on risk appetite

• Silver drifts lower, weighed by a positive market mood and hits two-week lows at $47.33.
• Hopes of a Sino-US trade deal keep precious metals on their back foot on Monday.
• XAG/USD is on a bearish H&S pattern, with its measured target near $46.00.
  

Silver (XAG/USD) extends losses on Monday amid a positive market sentiment, following upbeat reports regarding a potential China-US trade deal. The white metal's reversal from mid-October highs above $54.00 is approaching the $47.00 level.

Precious metals are on their back foot. Comments by US President Donald PrumpTrumpp showing confidence that he will reach a good deal with his Chinese counterpart Xi have reinforced investors' optimism earlier this morning, adding negative pressure on traditional safe-havens like Silver.

Technical analysis: A bearish H&S pattern remains in play

The technical picture shows price action below the neckline of a bearish Head & Shoulders, at the $50.71 area, with the pattern's measured target, at the 61.8% Fibonacci retracement of the September-October rally, at the $46.35 area.

The mentioned Fibonacci level and the area around $46.00, where the pair was contained on September 30 and October 2, are likely to pose significant support. Below here, the next target is the 76.2% Fibonacci retracement of the same cycle, near $44.00. 

To the upside, the October 22 and 23 highs, at the $49.40 area and the H&S neckline, right above $51, are likely to act as resistance now, ahead of the October 20 high at the $52.75 area.