Silver Price Forecast: XAG/USD holds above $49.00 despite improving market sentiment

• Silver price may face challenges as sentiment improves following US Senate passing initial vote 60-40 to advance government reopening bill.
• The grey metal gained more than 1.5% on a subdued US Dollar.
• China temporarily lifts its ban on exporting dual-use items like gallium, germanium, and antimony to the US.

Silver price (XAG/USD) extends gains for the second successive session, trading around $49.20 per troy ounce during the Asian hours on Monday. The upside of the Silver price could be restrained amid improving market sentiment as US Senate appeared on track to pass a deal to reopen the government.

US Senate advances government funding bill to end shutdown, moving it closer toward passage by voting 60-40 in first approval on extending the enhanced Affordable Care Act subsidies. The amended proposal would still have to be passed by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days, according to Reuters.

Silver prices may face challenges as market sentiment also improves amid easing trade tensions between the two largest economies, the United States (US) and China. China's Ministry of Commerce said that it would temporarily lift its ban on approving exports of "dual-use items" related to gallium, germanium, antimony, and super-hard materials to the US. The suspension takes effect from Sunday until November 27, 2026.

However, the grey metal advanced more than 1.5% on Monday amid a weaker US Dollar (USD), which makes dollar-denominated commodities cheaper for foreign buyers. However, the Greenback could receive support on the possibility of the government shutdown ending.