Silver prices have weakened on the general market as the U.S. dollar continues its upward scale. Despite data that shows the U.S. index is showing signs of a multi-year bullish pattern, experts are divided on the issue of the uptrend. Despite the economic improvements in the U.S., many analysts agree that America’s reserve currency lacks the catalysts to sustain its strength. The looming risks to the U.S.’ road to recovery such as the peak oil issue can result in this recent uptrend stalling, giving precious metals like gold and silver time to recover.
Silver technical analysis
Silver traders seem to be on alert as the precious white metal nears resistance at 21.10. According to the candlesticks chart below, it appears that there would be enough support for the silver market’s reversal, with support at 20.80. At this point, investors should be looking at buying opportunities when silver’s value drops to the $20 price mark.
May – August is silver’s weakest months, so it’s best to buy the precious white metal during this period. Investors may visit BullionVault’s live price chart to see the price today, as well as silver’s price fluctuations during May and August in previous years. In 2005, for example, silver was at around $7 per ounce at the start of May, and was at $7.29 per ounce by the end of August. However, at the beginning of September, silver picked up and started at around $7.60 per ounce and ended the year at around $9.08 per ounce.