November ended with silver posting a loss of $0.83 on Friday. The drop snatched the metal below $34, a level that silver has not managed to regain as the close of December's first week of trading approaches.
On Monday, silver appeared to be trying to make a comeback. The metal ended the day with $0.22 in gains, allowing for a close of $33.66. Still, there was not a sense that a bullish drive was underlying that move. On the contrary, there were suspicions that silver's gains could be largely attributed to short covering.
By Tuesday, it became clearer that bullish sentiment was lacking. March silver on the COMEX saw notable liquidation pressure and the metal's price was dragged down. Silver fell below its 50-day moving average and after an intraday move of over $1, the metal suffered losses of $0.75, finishing the day at $32.91.
“Given the breach in a major support level, we are shifting to neutral as silver looks vulnerable to further downside in the near term,” Scotiabank said of the metal's fall below $33.Even with weakness in the dollar early on Wednesday, silver could not manage to regain its footing for a rise. The metal hit a fresh new low during the day, touching $32.50 at one point. It recovered some its intraday losses, but only so much as to allow the New York spot price to close flat for the day. “Silver, platinum and copper have shown some some initial negative divergence with gold prices in early action today and that can sometimes hint at a lack of definitive consensus in the marketplace,” CME Group said of Thursday morning action. Standard Bank said earlier in the week that the futures market again appears torn.