During the early trading session on Wednesday, the silver market fell. Later it managed to bounce off of the $28.00 threshold in order to nail up the session. This recovery showed how much resilience there is over the silver support side. Yet, the most obvious evidence is that the white metal should sustain its position at this average level.
The silver future contract for delivery in May fell by 40 cents to finish the day at a bottom price of $28.27 per troy ounce. Considering the one month price change reviews silver tendencies are mostly mixed up.
On Thursday prior to opening bell, spot silver was trading at around $28.65 per ounce.
The white metal hit a four-week low at $28.27 per ounce. At the same the euro recorded a four-month low against the greenback. In addition, the stock markets also sold off along with the European currency. The major driver for these developments was Cyprus debt crisis. This Thursday the country was to determine the capital control over its financial institutions as banks opened once again.
Under the current market circumstances, investors are more than willing to buy silver in the physical terms. The appetite is even higher than the one we have seen recently. Though, traders of futures contract purchases are waiting to see a breakout above the $29.25 level. When that level is reached, the silver market is expected to continue to move upward. Eventually the commodity will aim at a significant target of $32.00 per ounce level.
Silver prices have been trading sideways for the past few weeks. Experts believe that the volatile performance is a point which brought the market lows. Yet, the downside is considered as a sign for approaching uptrend. The ongoing events such as central bank easing, sequestration, devalued currencies and Cyprus rescue have boosted investor demand for precious metals, especially silver.
Yet, the silver prices are still struggling despite the solid market fundamentals. More global economic growth is needed in order to make it to a higher silver price. At the same time, silver is expected to climb up shortly recovering from the euro shared decline recorded this Thursday.