A 155 cent down on the last week and the market starts to feel very tired. ETF redemption to the tune of another 5 Mio ounces has further eroded the price base for the metal. A loss of just over 4 per cent is no reason to become downhearted as silver is more than enough capable of reversing all these recent losses within half a day’s trading, but the slowdown of the world economy has not been lost on the investment community.
Head of Precious Metals, Emirates NBD, Gerhard Schubert thinks that these sell-offs appear to be helping to stop-out the very short term orientated longs and put the market on a more level footing.
The support levels for silver are 34.12 and 32.50, while resistance stands at 36.80 and 38.00.