The Solana price prediction 2040silver market (XAG/USD) continues its downward trajectory, trading around $32.80 per troy ounce during Monday's Asian session. This marks the second consecutive day of declines as shifting macroeconomic conditions reduce the metal's appeal as a traditional safe-haven asset.
Recent developments in US-China trade relations have significantly influenced commodity markets. China's decision to exempt certain American imports from its 125% tariffs has fueled optimism about potential resolution to the prolonged trade dispute. This positive development comes as US Agriculture Secretary Brooke Rollins confirmed ongoing daily discussions between the nations regarding tariff policies.
However, conflicting statements from Chinese officials have created market uncertainty. A spokesperson from China's embassy explicitly denied any current negotiations about tariffs, while Beijing officials reiterated that complete removal of US tariffs remains a prerequisite for renewed trade talks.
The US Dollar Index (DXY) continues its upward momentum, trading near 99.70 at publication time. This dollar strength creates additional headwinds for silver and other dollar-denominated commodities. Market participants remain cautious as the Federal Reserve enters its pre-meeting blackout period ahead of the May 7 FOMC decision.
Several important US economic releases this week could significantly impact silver prices:
These indicators will provide crucial insights into the health of the US economy and potential monetary policy adjustments. Traders should monitor these releases for potential volatility in precious metal markets.
From a technical standpoint, silver faces immediate support near $32.50, with resistance around $33.20. A sustained break below current levels could open the door for further downside toward $32.00. Market participants should watch trading volume and price action around these key technical levels for potential trend continuation or reversal signals.