Silver To Struggle Further As Markets Sell Off – optionsXpress

Like all commodities, silver prices have suffered during the market-wide break on eurozone jitters. Rob Kurzatkowski, senior commodity analyst at optionsXpress, says because much of silver’s demand came from investment buying, it could suffer further setbacks. Technical price charts also suggest that more losses are possible. With a 40% break from the April high, silver is in a bear market, he notes. “The longer the European debt crisis drags on … this threatens to have a large negative impact on the global economy, slowing demand for commodities. As a result, silver's industrial demand could continue to slump,” he says, adding a stronger U.S. dollar could have the same pressure on investment demand that slow economic growth has plagued industrial demand. Kurzatkowski says prices could test $25 an ounce as the sell off continues. “Prices have not yet hit oversold levels, suggesting the sell-off may have legs,” he says. 


Source:Kitco