Silver prices middle range created during the summer
commodities

Silver prices have slumped into a bear market

Silver prices have slumped into a bear market

Silver

  • Buz Investors Silver prices have slumped The precious metal is trading at $16.74 per ounce at 10:40 GMT this morning, 0.93% higher from the New York close.
  • During the session, silver traded at a high of $16.95 per ounce and a low of $16.59 per ounce. In the New York session on Friday, silver rose 0.36% and closed at $16.59 per ounce.
  • Immediate downside, the first support level is seen at $16.51 per ounce, while on the upside, the first resistance level is at $16.96 per ounce.

Silver prices have slumped

Silver prices middle range created during the summer

Silver prices have slumped   Silver prices have been clobbered into bear-market territory, courtesy of a strengthening dollar and rising bond yields, and the near-term picture looks dull for the metal.

As of Wednesday, silver futures SIZ6, +1.09%  had sunk 20.1% from their 52-week high of $20.666 an ounce, reached on Aug. 2, according to Dow Jones data. An asset’s loss of 20% or more from a most recent high is considered bear-market territory

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Silver and gold prices “remain troubled by the current focus on rising dollar and bond yields. The resilience seen among investors using exchange-traded products has started to fade with reductions seen the past nine days,” wrote Ole Hansen, head of commodity strategy at Saxo Bank, in a note Wednesday, ahead of the Thanksgiving Day holiday.

Meanwhile, the dollar has climbed as investors widely expect the Federal Reserve to raise interest rates next month and continue raising them in 2017 if inflation picks up. The ICE U.S. Dollar Index DXY, -0.14%  , a gauge of the dollar’s strength against a basket of six currencies, has recently soared to levels not seen in nearly 14 years.

Those moves have sapped silver prices. Higher interest rates are typically negative for nonyielding silver and other metals, while dollar strength can hurt demand such dollar-denominated metals.

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Richard Dambrosi (JADTECNIC) Has Been Sharing Forex Analysis Trending Markets News since 2011. Editors and Founder of InvestorsBuz.com , has a passion for Forex Social Sharing analysis and Market Trends Such as Self Driving Cars , Electric Cars, Medical Marijuana , 3d printing and Cloud computing , Refers to Readers as BUZ INVESTORS.

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