🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Silver futures plunge 8% as investors exit precious metals

Published 04/15/2013, 04:23 AM
BARC
-
GC
-
HG
-
SI
-
NOTE
-
DRP
-
Investing.com - Silver futures were down sharply on Monday, falling by as much as 8% to hit the lowest level since November 2010 as investors continued to liquidate positions after prices broke below key support levels.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD24.37 a troy ounce during European morning trade, down 7.5% on the day.

Comex silver prices fell by as much as 8.5% earlier in the session to hit a daily low of USD24.09 a troy ounce, the weakest level since November 3, 2010.

Silver prices were likely to find support at USD23.75 a troy ounce, the low from October 29, 2010 and resistance at USD25.03, the high from November 3, 2010.

Silver’s losses accelerated sharply after prices broke below key support levels close to the USD25.61-level and then the USD24.99-level, triggering a flurry of automatic sell orders amid bearish chart signals.

Prices of the precious metal are down nearly 51% 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 USD24.00-level can lead to further losses in the near-term.

Market sentiment was hit after official data showed that the Chinese economy expanded by 7.7% year-on-year in the three months to March, down from 7.9% in the fourth quarter and undershooting expectations for 8.0% growth.

Separate reports showed that Chinese industrial production also came in below expectations, while retail sales rose slightly more than fore

Elsewhere on the Comex, gold for June delivery lost 4.1% to trade at a two-year low of USD1,440.05 a troy ounce, while copper for May delivery dropped 1.25% to trade at USD3.308 a pound.

Gold’s losses accelerated sharply after prices broke below key support levels close to the USD1,477 and then the USD1,440-level, triggering a flurry of automatic sell orders amid bearish chart signals.

Prices of the precious metal are down nearly 25% since hitting an all-time high of USD1,920.80 an ounce in September 2011, further deepening its descent into bear market territory.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.