NEW YORK (Scrap Register): Silver continues to struggle Wednesday, as the market sees its longest daily losing streak since mid-April, with many analysts eying July’s one-year lows as the next price target.
Silver prices have fallen through the key psychological level of $16 an ounce as the market remains near a five-month low. March silver futures last traded at $15.97 an ounce, down 0.61% on the day.
Ole Hansen, head of commodity strategy at Saxo Bank, said that investors should prepare for further losses in the silver market as the metal has struggled to gain significant investor attention in 2017.
“The push through a key retracement level at $16.30 does not bode well for silver’s immediate future,” he said. “I think we need to get to a level that puts the metal back on investors’ radar and that price is lower.”
Hansen said that he expects that silver will continue to underperform gold, looking for the gold-silver ratio to hit 80, before silver buyers step in. Early Wednesday, the gold-silver ratio on Kitco.com hit a one-year high at 79.50.