Prices of silver have plummeted about 36% in just the past 5 days led by a rout in the commodities and riskier asset classes. Traders also liquidated positions in commodities to meet the margin requirement in nose-diving global equities. Prices have touched $11.77 an ounce in the previous trading session, the level not seen in 11 years.
Silver, which touched a high of $18.92 on February 24, 2020, and again bounced to $17.48 on 06 March 2020, failed to mobilized safe-haven appeal-like gold owing to slumping industrial commodities, panic all across the riskier asset classes caused by a pandemic coronavirus.
Yesterday, prices of silver have undergone catastrophic daily price drop in several years, lost about 17% at one point in time.
Coronavirus pandemic continues to spread all around the world, and one effect has been the drop in the factory activities in most countries.
Looking forward, silver needs to hold on yesterday’s trough of $11.77 to pave the way for some relief rally in near-term towards the resistance of $14.5-$14.90 vicinities.
But on the flip side, crash below $11.77 will take the prices towards $8.81, low hit during the 2008 global financial turmoil period.
The temporary range can be defined between $11.77 and $14.9 for some time now.