Silver weakens as traders take profits into the weekend
|- XAG/USD remains close to 7-year high $29.85 from Thursday.
- Profit-taking no surprise as the metal is up nearly 23% in August.
- Gold remains close to record highs of $2075.
Investors bank weekend profits
Silver XAG/USD paused for breath Friday as stock markets continued their onward march after a reassuring Nonfarm Payrolls number. At the time of writing, XAG/USD was trading $28.10 down over 8% from a seven-year high seen overnight Thursday into Friday trade.
Bullish argument still holds
The prospects still look good for silver according to analysts, with the metal still a long way from record highs while gold (XAU/USD) breaks new records. Silver also benefits heavily from zero to negative interest rates. During the financial crisis, silver rallied over 300% from January 2009 to April 2011. Weak dollar and safe haven play also underpin the metal.
Technical levels
$26.21 is the previous week high from July 28 and below that $24.00 saw a lot of time and volume. On the upside the target remains the January 2013 high of $32.47 and then $35 from May 2012 and $37.49 2012 year high.
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.