The technical scenario for the silver price remains bearish, while buyers are still unable to reverse the significant selling pressure of the last few days.
Despite reduced volatility and US dollar strength, the price of silver has not yet offered any indication of trend inversion, while bearish momentum still wins out.
Silver isn’t out of the woods yet. The spot price has fallen again below $21 an ounce, testing the low reached earlier this week in the region of $20.7-20.8. These levels now represent the first concrete support for the precious metal and a breakdown would increase the chances of a test to the following key level – the psychological threshold of $20 an ounce.
For short-term investors – and, even for contrarian traders – it is relatively hard to find an entry point in the current market. Despite this, the picture changes for long-term investors, who are probably much happier to have the chance to increase their silver exposure at a cheaper price.
According to figures published by the Silver Institute, the physical market for silver this year is set to be in deficit in 2023 for the third year in a row (with demand exceeding the total production of silver). This could be seen as a positive indicator in the long-term scenario.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
Read our Editorial Guidelines here.