Silver markets tried to rally but then plummeted towards the $15.15 level as the Americans got to work. That being the case, it has lost $0.35 or so, roughly 2%. After that, it looks as if it is going to test the crucial $15 level underneath which has previously been resistance, and now it should in theory be supported based upon recent reaction. That being said, will have to wait and see whether or not it holds, so after a huge move down like this it makes sense to sit on the sidelines and wait to see how the market behaves before putting money to work. On the other it has seen such a massive move lower. It is at this point need to pick a spot that is crucial. In this case, the $15 handle. If it can get some type of supportive then it opens up a buying opportunity on Monday. If it break down below the $14.90 level, then it go to the $14.50 level.
Silver slipped for the first time in five sessions and was down 1.4 percent at $15.23 per ounce
Silver prices fell more than 1% in the European market yesterday to drop from the highest in two weeks
The US dollar index rose 0.18% to 96.64 compared to the opening at 96.49
The precious metals index is just recovering, and silver have the most upside potential
May Comex silver was last down $0.266 at $15.19 an ounce
Silver fell during the day after gaining in two consecutive sessions, and the metal was under pressure as the dollar gained against most major currencies. Silver has room to rise above $16 an ounce and test the resistance level around the $18 level.
Silver prices fell 1.2% to trade at $15.22 an ounce from the opening of $15.41, the highest at 15.45 and the lowest at $15.20. Silver ended yesterday’s trading flat with little change after prices hit a two-week high of $15.52 an ounce earlier in the session.
The dollar index rose by about 0.3%, about to make its first gain in five days, within the rebounds from the lowest in about two weeks at 96.32 points, reflected the recovery of the US currency against a basket of other major currencies, which is currently putting pressure on silver prices.
The dollar’s recovery comes as 10-year Treasury yields interest rates bounce back from a two-month low as the risk appetite improves in high-yielding asset markets, which makes the dollar the best current investment in the foreign exchange market.
Stocks in Europe and the United States jumped to a five-month high, as demand for safe-haven assets declined again, led by the silver. China’s industrial output fell to a 17-year low in February and this report weighed on the silver markets.
Some profit taking from recent gains was featured today. Pressure also came from downbeat economic data coming out of China and by a firmer U.S dollar index.
This article provided by NewsEdge.