by Michelle Smith, Silver Investing News:
Silver’s price action this week has analysts wondering if the beleaguered white metal may be nearing the bottom of its seven-and-a-half-month downtrend.
The trading week started off with silver falling 9 percent, to $20.25 an ounce — its lowest level in more than two and a half years. Market experts pointed to an abrupt leap in the equally embattled yen in the early hours of trading, explaining that investors may have sold off the precious metal to cover losses in the currency market, reported The Wall Street Journal. The large sell-off triggered automatic sell orders, further exacerbating the price decline.
Silver managed a stellar recovery by midday, with prices climbing as high as $23.24 an ounce. “Heavy short covering and bargain hunting were featured during the precious metals’ turnarounds,” noted Kitco’s Jim Wyckoff. Silver’s technical action Monday, which included “a bullish selling ‘exhaustion tail’ on the daily bar chart,” is a sign that the metal may be in a near-term market bottom, he added. Silver ended the day at $22.92 an ounce.
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