Silver Price News: Silver Gains 3.5% as Gold Powers Higher

Silver prices moved back above $31.00 an ounce on Friday, to end the week in positive territory as gold prices made more significant gains through the week.

Silver prices notched up an intraday high of $31.44 an ounce on Friday and eased back to around $31.30 an ounce later in the session. That compared with around $30.80 an ounce in late trades on Thursday. Friday’s action left silver prices up around 3.5% over the week.

Silver’s modest gains on Friday came during a bullish week for gold, which rallied across the week as a whole, on the back of expectations of US interest rate cuts next month and safe haven interest amid worries over escalating conflict between Russia and Ukraine.

Silver’s move higher last week followed a three-week slump for the grey metal, which saw prices fall from around $34.90 an ounce on October 22^nd to as low as $29.82 an ounce on November 14^th. The dip below the $30.00 an ounce mark didn’t last long and appeared to attract renewed buying, lifting prices back above $31.00 an ounce by the end of last week.

Technical analysis

On the technical charts, silver traded close to rising oblique major support at around $30.87 an ounce as of Friday, a level that is not far above the 50% Fibonacci retracement level of $30.69 an ounce which is linked to the August to October three-month bullish move for silver prices. The recent weakness in November has pulled the 20-day moving average down to $31.72 an ounce, which may become a target for the market in the coming days. The 10-day Relative Strength Index continues to give a broadly neutral reading at 48.68.

Upcoming events

Looking ahead, Monday will bring German business climate figures for November, while the markets will also be looking ahead to US data on Wednesday, including Core PCE Price Index figures and durable goods orders for October, followed by GDP growth data for Q3. The markets are watching the health of the US economy for the latest signals on monetary policy, as traders weigh the prospects of a further interest rate cut in December.