Silver Price News: Silver Falls To Two-Week Low

Silver prices fell sharply for a second straight day on Thursday, dropping in line with lower prices for gold.

Silver dropped as low as $29.79 an ounce on Thursday, down from as high as $31.39 an ounce on Wednesday, taking the metal to its lowest price for two weeks.

The recent peaks for both precious metals appeared to attract some profit-taking in the latter part of the week, sending prices lower.

A degree of uncertainty also persisted for silver demand as the markets awaited the outcome of China’s Third Plenum, which was set to end on Thursday. The twice-per-decade meetings generally set out the path for economic reforms in the years ahead, and this year’s gathering had spurred hopes that fresh measures could be agreed to stimulate China’s economy, driving increased demand for commodities including silver.

China’s ruling Communist Party wrapped up the talks on Thursday underscoring its support for driving the country’s technological advancement, according to news reports. However, it was not immediately clear whether this would involve specific new measures, and the markets were waiting for further details to emerge on Friday.

Silver’s slump below the psychological $30.00 an ounce level will now focus attention on potential support at $29.00 an ounce, which proved critical in June after prices fell from over $32.00 an ounce in late May.

Looking ahead, economic data releases are looking light in the next few days and the markets are likely to be looking ahead to Wednesday next week which will see July manufacturing data released for India, the Euro Area countries, the UK and the US, for the latest update on industrial activity in several major economies.