Silver prices slide, but how low will they go? [Video]
|After a bullish start to the month, Silver prices pulled back on the final trading day in February as traders booked profits.
Silver prices opened the month with all cylinders firing – soaring over 13% on the first trading day of February, to hit $30 an ounce for the first time since 2013. That's Silver’s biggest one-day move since 2008.
Currently, Silver prices are undergoing a routine end of month correction, as trader’s book profits. This will ultimately present a series of attractive opportunities to "buy back into Silver at huge discount" heading into March.
While Silver prices remains vulnerable to further weakness in the near-term – it goes without saying – the fundamental backdrop for precious metal remains extremely bullish in the long-term.
One of the key drivers for further upward momentum in Silver prices is the risk of rising inflation.
Another bullish factor is the global fight against climate change. Silver is a key component used in renewable energy and solar power technology. As governments around the world pursue more aggressive environmental policies to reduce carbon emissions – this will continue to boost silver demand for years to come.
Silver was a favourite with traders last year as the precious metal rallied nearly 60% – and still remains one to watch in 2021.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.