Silver prices remained basically unchanged from last week, however they could not stay above US$ 29, Silver has been trading in a range of between $28.50 and $29.30.
Because of the financial crises in Cyprus, there was a sell-off of all the industrial metals during the first couple of days of the week. Silver, which has been taking its clues from the industrial white precious metals group for the last couple of weeks, was hit by the sell off. However it was able recoup some of its losses.
Silver not being able to sustain stay above US$29 is a matter of concern and support levels of $28.50 and $28, which have so far been strong, could be tested. The concerns about the Cyprus crises could push up gold prices. If silver starts taking its clues from gold, it’s price could also benefit, said Gerhard Schubert, Head of Precious Metals, Emirates NBD Wealth Management.
The Cyprus financial crises will continue to take center stage in the coming week and any developments must be carefully tracked as this could have a bearing on the price of silver. The price of silver must also carefully be watched for any signs of cracking in its support levels, said Schubert.