Silver Price News: Silver Ends Week with 1.3% Loss

Silver prices fell for a second straight day on Friday to cap the week with moderate losses overall.

Prices fell as low as $30.36 an ounce on Friday, down from around $31.08 an ounce in late trades on Thursday and from a mid-week high of $33.36 an ounce on Wednesday. The combined falls on Thursday and Friday left silver posting a 1.3% loss on a week-on-week basis.

Stronger dollar weighs on precious metals

The US dollar strengthened against other major currencies through the week, weighing on dollar-denominated gold and silver prices as it makes the precious metals more expensive for buyers in other currencies.

Meanwhile, three central banks, the BoC, SNB and ECB all cut interest rates last week – a notionally supportive element for precious metals prices. However, sentiment seems to have turned bearish in the short-term, following silver’s highs in late October.

Technical analysis

On the technical charts, silver prices on Thursday managed to push through descending oblique minor resistance at $31.93 an ounce on an intraday basis. However, the sharp and sudden fall to around $31.00 an ounce later in the session appeared to re-confirm this resistance level, lending a bearish tone to the start of Friday’s session. Friday’s fall below the 20-day moving average at $30.97 an ounce further added to the sense that momentum has shifted to the downside. This raises the prospect of a potential re-test of ascending oblique major support at $29.91 an ounce in the coming days.

Upcoming events

Looking ahead, Monday will see December manufacturing and services data for the Euro Area, UK and US, while Tuesday will bring US industrial production figures for November. Then attention will turn to Wednesday’s interest rate decision by the US Fed, which is widely expected to cut rates by 25 basis points, having cut rates already this year in September and November by a total of 75 basis points.