Silver Price News: Silver Pulls Back from Two-Month High

Silver prices fell back on Friday, giving up some of the gains seen earlier in the week, as gold prices eased back from a new all-time high.

Silver prices dipped as low as $31.84 an ounce on Friday, compared with around $32.27 an ounce in late trades on Thursday.

The price action largely followed gold, which briefly hit a new all-time high of $2,887 an ounce on Friday, before pulling back later in the session. Silver’s moves above the $32.00 an ounce mark last week mean the metal has traded at a two-month high.

Dollar strength weighs on silver price

The US dollar strengthened against other major currencies on Friday, which helped pull dollar-denominated silver prices back from their mid-week highs at the end of the week.

However, the gold to silver ratio has been relatively high in recent months at around 87 to 91, which may be taken as an indicator that silver prices have potential to rise further relative to gold.

Silver, like gold, has benefited from economic uncertainties linked to recently-announced US tariffs on imports, which prompted China to respond in kind.

Technical analysis

On the technical charts, silver’s gains last week appeared to run out of steam as the price encountered a convergence of rising oblique major resistance at $32.28 an ounce and descending oblique minor resistance at $32.40 an ounce. The market’s failure to punch through those levels on the upside may be taken as a bearish price signal in the short-term, and the significant premium above the 20-day moving average at $30.94 appears to further confirm that view. Nevertheless, silver is likely to continue taking direction from gold prices.