Posted 6th October 2023

Silver Price News: Silver Takes a Tumble With Spot Price Falling Below $21

silver price takes a tumble below 21 dollars

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.

kinesis silver kag on kinesis exchange
Silver ($/oz) price – 4-hour view – from Kinesis Exchange

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.

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