The white metal has been caught up in the storm created by a deteriorating global growth outlook, weaker than forecast output from China, selling in the gold market and a move to safe haven assets.
The silver market broke beneath the psychologically important $30.00 level last week, as investors posted the worst weekly decline in eight weeks.
Further losses are expected, as the market searches for support. The immediate silver price levels to watch are $28.44 (last week’s low), then $27.24 the trend of higher lows from the base of 2010 and then the $26.14 low from December last year.
Resistance levels sit all the way up from $30 to $33.28 (the 8 – week high), but are unlikely to be tested next week.