Silver Drifting After Last Week’s Plunge, G-7 Mobilizes Against Coronavirus

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Updated: Mar 3, 2020, 15:47 GMT+00:00

Silver prices remain steady, after last week's bloodbath. Silver is looking upward at the $17.00 level and there is room for the metal to fall further.

Silver is trading sideways in the Tuesday session. Currently, silver is trading at $16.81, up $0.07 or 0.46% the day.

Silver Steady, but Demand Concerns Remain

Silver prices have steadied this week, after the metal plunged last week. The metal finds itself below the 17.00 level, after falling 10% last week. This marked the sharpest weekly decline since April 2013. Silver is considered a safe-haven asset, but that status hasn’t helped the metal lately, since the metal also is used as an industrial component. With the coronavirus reaching the United States, there are growing concerns that the economic toll of the outbreak will dampen the industrial demand for silver.

G-7 Mobilizes to Combat Coronavirus

The G-7 countries have all confirmed coronaviurus cases and will hold an emergency conference call at 12:00 GMT, in order to discuss measures to counter the economic risks of the outbreak. The discussion will be led by U.S. Treasury Secretary Steve Mnuchin and Federal Reserve Chair Jerome Powell. The participants include the world’s top financial ministers and central bankers. There is growing alarm at the economic damage that the virus has caused to the global economy. In particular, the outbreak has resulted in closed factories, the disruption of supply chains and a plunge in travel and tourism. France’s Finance Minister Bruno Le Maire has promised “concerted action”. The mobilization of the G-7 has raised risk appetite and boosted European stock markets as well as U.S. futures on Tuesday.

Silver Technical Analysis

As silver falls, support levels continues to break. There is immediate resistance at 16.90, followed by the 200-day EMA at 17.11. Above, there is a resistance line at 17.50, followed closely by the 50-day EMA line is situated at 17.74. On the downside, we find support at 16.30. The next support level is at 15.50.

About the Author

Kenny Fisherauthor

Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.

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