Silver Price News: Silver Climbs After Dip Below $30.00 Attracts Buyers

Silver prices made gains for a second day on Friday, helping to pare their week-on-week losses, as the market took support from modest gains in gold.

Prices rose as high as $30.91 an ounce on Friday, compared with around $30.28 an ounce in late deals on Thursday.

Silver fell as low as $29.71 an ounce on Thursday – the first time the grey metal has fallen below the $30.00 an ounce level since mid-November. This appeared to reignite buy-side interest, sending prices higher by the end of the week.

However, silver looked a little softer going into Monday’s session, dipping to around $30.20 an ounce.

Softer US Dollar helps underpin silver

A degree of support for silver came on Friday in the form of a weaker US dollar, which tends to make dollar-denominated precious metals cheaper for buyers in other currencies.

In addition, silver, like gold, continues to benefit from expectations of a further 25 basis-point cut to US interest rates in December, which would reduce the opportunity cost of holding non-interest-bearing assets.

Technical analysis

On the technical charts, silver prices have shown some reluctance to go below several key support areas last week, notably the $30.00 psychological level; oblique minor support at $29.89 and the 61.8% Fibonacci retracement level of $29.74 an ounce, which is based on silver’s August-to-October bullish move. All of this suggests prices may be finding something of a base at current levels of around $30.00 to $31.00 an ounce.

Upcoming events

Looking ahead, Monday will bring the latest US ISM manufacturing PMI figures for November, followed by the JOLTs job openings for October on Tuesday, for the latest update on the US economy. Further out, Wednesday will see the US ISM services PMI figures for November and a speech by US Fed Chair Jerome Powell later in the evening, which may provide further signals on economic conditions in the US.