Silver miners took a beating, as precious metals steeply decline amid better than expected US economic data. Silver has bounced of the session lows, currently down .30 cents at $19.11 per ounce. Jeff Young, chief investment officer at NexGen Financial Corp., said “the better than forecasted US data means there is less demand for gold [and silver] as a safe investment.”
Silver Wheaton Corp. (SLW) is down almost four percent, declining .69 cents (as of writing) to $20.61. Fortuna Silver Mines and Silver Standard Resources declined over seven percent at intraday lows. Gold miners got nailed, too. Barrick Gold Corp., the world’s largest gold producer, fell over 3.5 percent, while the SPDR Gold Trust (GLD) hit the short-term target of $121.81 before seeing some demand to push price action above $122.
The iShares Silver Trust (SLV) saw a decline exceeding 1.5 percent as spot prices flirted with $19 per ounce. The weekly chart looks bearishly-ugly. Price action has reached demand at $18.17, but the strong institutional bearishness on precious metals will cause SLV to retest the two-year lows of $17.75.
Minor support, broken at $18.40, is now acting as resistance. If SLV can close above this level, $18.65/70 could be in sight.