Silver Price News: Silver Reclaims $31.50 An Ounce

Silver prices climbed on Tuesday to recapture the moderate losses seen on Monday.

Prices briefly rose as high as $31.97 an ounce, although the market couldn’t sustain the gains, and prices eased back to just over $31.40 by early evening.

The trend on Tuesday followed the gold markets, which saw prices strengthen on Tuesday after a softer day on Monday. Silver’s slight weakness over the last few days followed a 12-year high of $32.75 an ounce on September 26.

The markets were mulling the implications of mixed economic data from the US on Tuesday, with manufacturing figures for September coming in below market expectations, while new job openings for August gave a better-than-expected reading.

In addition, ongoing conflict between Israel and Lebanese group Hezbollah continued to rattle the markets on Tuesday. Further raising the stakes, Iran launched missile strikes against Israel on Tuesday in response to its limited ground invasion of Lebanon, and this clearly highlights the risk that greater powers could be drawn into the conflict more directly, in a move that could further drive interest in safe haven assets.

On the technical charts, any gains from this point on could refocus attention on a test of the recent 12-year high of $32.75 an ounce, to provide evidence supporting a bullish trend, while any downside moves could bring into focus the 20-day moving average, currently at $30.29 an ounce and rising trend line support at $28.89 an ounce.