Silver Price News: Silver Sinks to One-Month Low

Silver prices edged further down on Friday to clock up week-on-week losses of around 4%, and marking a one-month low.

Prices eased to a low of $30.86 an ounce on Friday, before recouping some of the losses to trade at $31.24 an ounce later in the session. That compared with around $31.28 an ounce in late trades on Thursday.

Silver dips as gold momentum turns negative

Taking the week as a whole, silver prices followed a similar downward trajectory to gold, which came under pressure amid a stronger US dollar and more positive sentiment in the wider financial markets which made safe haven assets less appealing.

Technical analysis

On the technical charts, silver’s significant losses since February 20^th have sent prices crashing through the 20-day moving average of $32.10 an ounce on February 25^th, bringing into focus the next potential support zone at $30.53 an ounce (descending oblique minor support). Ascending support can also be found at $30.19 an ounce. The 10-day Relative Strength Index is giving a low reading at 37.7, which may be taken as a sign that the market is nearing oversold territory in the short-term. With that in mind, those lower support zones will become an important area to watch for a potential price rebound.

Upcoming data

Monday will see the release of Euro Area and UK manufacturing figures for February, which could play into the industrial demand picture for silver. Soon after will be the release of Euro Area inflation figures for February, which will be closely watched for any clues on the path forward for interest rates by the ECB. These will be followed by the US ISM manufacturing data for February, for the latest snapshot on the US economy.