After surging to record highs from September to December 2022 the price of Sliver has seen a plunge of 13% in its price.
February marks the worst month in terms of price for Silver for over three years. The commodity’s chart shows that it can go further down by 18%.
Moreover, the recent momentum in the price of the U.S. Dollar will further halt Sliver’s chances to rebound anytime in near future.
A few months ago, silver was in competition against gold and both of these commodities were good options for secured investment.
At a certain moment, silver caused an increase in the price of gold, but then caused it to decrease. The slip in the price of Gold came to end when it touched the $1,800 mark.
Sliver Price Kept on Decreasing
As compared to gold, the price of silver constantly declined and recently it has been at its three-year low.
The white metal, also known as silver, may experience further deterioration as it approaches the critical support level of $20.
Potential breakdown blow this point is very much on the cards for silver as a strong dollar puts further pressure on the commodities.
As Tuesday saw the end of trading for February, spot silver remained around $20.65 per ounce in the Asian market. However, on New York’s COMEX the silver futures price was valued at $20.75.
Both markets have seen a decline in the price of silver by 14% as compared to its price at the start of 2023. Almost a 13% decline in the price of silver has been experienced in February.
February 2023 Has Been the Worst Month for Silver for Almost Three Years
March 2020 marked the last time silver experienced a significant decline of 16%, attributed to the global outbreak of the coronavirus pandemic.
But February 2023 has now surpassed that decline, making it the worst month for silver since then.
On the other hand, DIF has seen an increase for eight consecutive weeks, at the end of today’s trading session USD is estimated at 105.315.
As compared to its price on Monday, the price of USD on Tuesday has seen a further surge in its price. A high dollar means further misery for silver.
As compared to white metal silver, and yellow metal, gold has far better chances of beating the strong market bears and rising.
Before seeing a successive decline in its price in late January and now in February, silver previously accumulated its price in an upward direction.
The price of silver at that particular time saw a rise of 35%. For a similar period, the gold-silver ratio was valued at $75. The ratio indicates ounces of silver that can be obtained for the price of one ounce of gold.
The daily RSI of spot silver has been pushed due to the oversold conditions and moved to 24 points.
The dominance of the US dollar would ultimately overpower all metals. As long as the greenback will remain strong silver would not have much power to resist.
The current situation indicates that silver is at a critical turning point, and it can go further down in its price.
If the white metal failed to come back to its previous price of $22 in the short term, it would be a discouraging sign for silver traders.
As a result, silver will rapidly move below $18. As long as the price of USD will remain high and China will not return to its peak efficiency, silver recovery in terms of price is impossible.
To prove the bullish trend, silver must increase in value despite the imposition of higher margin requirements.
In recent weeks, gold and silver both have remained sluggish, but gold is likely to recover as compared to silver.
As the things stand, silver is facing high selling pressure from investors. Moving forward, investors will be quickly on their way to selling silver.