Silver futures shook off earlier weakness to trade modestly higher during European morning hours on Thursday, but the market remained vulnerable to further losses as investors remained hesitant to enter the market.
On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD23.30 a troy ounce during European morning trade, little changed on the day.
Comex silver prices fell by as much as 3% earlier in the session to hit a daily low of USD22.44 a troy ounce. Prices fell to USD22.01 a troy ounce on Tuesday, the weakest level since October 5, 2010.
Silver prices were likely to find support at USD22.03 a troy ounce, the previous session’s low and near-term resistance at USD23.74, Wednesday’s high.
Silver futures have lost nearly 16%, or almost USD4.30 per ounce, since last Friday, as investors exited the market after prices broke below key support levels.
Prices of the silver metal are down nearly 53% since hitting an all-time high of USD49.81 an ounce in April 2011.
Silver has been on the decline given “weak industrial demand and mixed investor interest,” analysts at Barclays wrote in a research note last week.
Market analysts have warned that a drop below the USD22.00-level can lead to further losses in the near-term.
Elsewhere on the Comex, gold for June delivery rose 0.2% to trade at USD1,385.45 a troy ounce, while copper for May delivery dropped 1.7% to trade at USD3.134 a pound.
Courtesy : Investing.com