Silver Price Points Third Consecutive Weekly Drop…Suffering Majority Of Loss On Friday

Silver futures fell 2.1% on Friday for a weekly loss of roughly 2%, the metal’s third consecutive weekly drop.

Friday’s decline followed a move higher in the US dollar.  After showing weakness throughout the week the currency of the world’s largest economy experienced some strength, which discouraged holders of international currencies from buying dollar-denominated commodities.

Like it has been recently, silver also showed an exaggerated movement in the same direction as gold during the session. While gold prices ticked lower on Friday, silver slipped. Gold managed to fall to close below its recent level of support of $1,350 per ounce. However, it did not see the sell-off analysts were expecting once it crossed below that key price line. On the other hand silver demonstrated a big reaction.

Looking at silver’s technical indicators, moving averages and technical indicators have the metal rated as a Strong Sell. While silver closed Friday’s session at $19.32 an ounce, it was even experiencing more downside in after hours in electronic trading. It was recently down over another 2%. The metal is finding support at $19.26 while resistance is up at $19.34.

Even though silver moved significantly lower than gold this week, it remains the top performing precious metal year-to-date with almost a 39% advance. The commodity has been benefiting not only from renewed interest in precious metals, but also from indications that industrial demand for silver remains high. Silver is popular both as an investment - and also has a plethora of industrial uses. It behaves both as a precious metal and also as an industrial metal. For reference, gold is up about 26% this year.