(Kitco News) – The adjective analysts and traders are using to describe the price action in silver Wednesday morning is “horrible,” as the market hit new six-year lows.
The selloff in silver picked up steam late Wednesday morning with September silver futures dropping below $14 an ounce, hitting an intra-day low at $13.910 an ounce.
Silver is the worst performing commodity among the entire metals complex, down more than 3.7% on the day, compared with a 1.4% decline in gold prices, a 2.7% drop in copper prices and platinum prices, which are up 0.4% on the day.
September silver futures last traded at $14.070, down 54 cents on the day.
“The chart is really ugly. While prices don’t move in a straight line, I don’t think we have seen an end to lower silver prices,” said Chris Beauchamp, senior market strategist at IG Markets.
Beauchamp added the technical chart does not bode well for the grey metal as prices have pushed below their 200-month moving average, the first time this has happened since 2004.
Jim Wyckoff, senior technical analyst at Kitco.com, agreed that silver prices could continue to head lower as the market has suffered some “serious chart damage.” Wyckoff added that his next support target for silver is around $13 an ounce.
Although silver has precious metals qualities, analysts said that its use as an industrial metal is currently driving the price action.
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