Silver maintains its bearish trajectory as trade sentiment shows signs of improvement

On Monday, silver prices declined moderately for the second consecutive trading session. Pressure on the metal intensified amid improving trade sentiment between the US and China, reducing its appeal as a safe-haven asset.

According to President Donald Trump, tariff negotiations with Beijing remain ongoing. Last week, the White House administration signaled readiness to de-escalate the trade conflict between the world's two largest economies, a confrontation that had previously fueled recession fears.

On Friday, China exempted certain US goods from 125% tariffs. However, Chinese authorities later denied President Trump’s claims about progress in the talks. Separately, a Beijing official reiterated on Thursday that the U.S. must first remove all unilateral tariffs before negotiations can resume.

Meanwhile, the Federal Reserve (Fed) is observing its customary pre-meeting silence ahead of the May 7 FOMC meeting.

Market participants are focused on key U.S. macroeconomic data expected this week. These include: the preliminary GDP report for the first quarter, consumer spending figures (PCE) for March, and nonfarm payrolls for April. These publications could significantly impact expectations for the Fed's next steps and set the tone for silver's near-term price dynamics.

From a technical perspective, silver prices are forming a broad correction on the H4 timeframe. The wave structure shows the development of the second ascending wave. However, the Bears Power and Bulls Power indicators (standard settings) signal a potential reversal and the start of the third downward wave, as confirmed by their histograms remaining below the zero level.

Signal:

The short-term outlook for silver is to sell.

The target is at the level of 29.300.

Part of the profit should be taken near the level of 31.000.

A stop loss could be placed at the level of 35.050.

The bearish scenario is short-term, so a trading volume should not exceed 2% of your balance.