Silver Price News: Silver Slumps to Three-Week Low

Silver prices fell on Tuesday, weighed down by weaker gold prices, a stronger dollar and rising US treasury yields.

Prices fell as low as $30.16 an ounce, compared with around $31.67 an ounce in late trades on Monday. That was the lowest price for silver since September 18 – a three-week low. Prices came up off the earlier lows to trade at around $30.70 an ounce later in the day Tuesday.

Overall, the grey metal came under downward pressure from a rising US dollar, which has strengthened against other major currencies in early October, as well as rising yields on US 10-year treasury bonds, which dent the appeal of non-interest-bearing assets like precious metals.

On the technical charts, the recent action shows that silver has pulled back from horizontal resistance linked to the May highs of around $32.50 an ounce. However, silver prices are also in a shorter-term bullish trend channel that started at the lows of around $26.50 an ounce in early August. Should prices deteriorate further, this trend channel indicates downside support at around $29.00 an ounce.

Looking ahead, Wednesday will see a round of speeches by US Fed officials, while Thursday’s US inflation figures for September may provide a gauge on the US Fed’s upcoming decision on interest rates on November 7. The markets currently anticipate with a large majority a cut of 25 basis points to 4.5%.