Investing.com – After outperforming in November and December, silver’s rally has slowed, with prices falling below $24 an ounce.
It was trading for the month of March at $23.57 an ounce, down 1.50% on the day. As selling pressure mounts, analysts said they are watching initial support at $23.26.
Profit taking operations
Some analysts note that after a 40% rally from a two-year low in September, the precious metal has seen some strong profit-taking at the $24.50 resistance. The selling pressure comes in as the US dollar appears to have found renewed support after significant selling pressure. The American is witnessing strong support around 102 points, which is the lowest level in seven months.
Silver’s peak is coming in the near term as many analysts expect prices to continue to rise. Commodity analysts at Commerzbank said they see the silver market rallying above $25 an ounce by the end of the year as higher prices are supported by industrial demand.
General setback.. gold
However, according to some analysts, weak silver prices do not bode well for the overall market in the near term.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, warns investors that silver could lead lower, as the yellow metal has reached heavy resistance around $1950 an ounce and the reason for that is silver in his view.
“The continued poor performance of silver relative to gold increases the risk of a general downturn in the metal,” he said in a comment on Twitter.-
Analysts at European precious metals firm Omicor also highlighted silver’s disappointing performance compared to gold and copper.--
Analysts said, “Having outperformed gold in November and December, silver now appears to be leading the race, hovering around $24/oz. The lack of momentum in silver also contrasts sharply with other industrial metals such as copper, which recently reached $7. Months of continuous rising.
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