Silver headed into the weekend with losses after the latest Federal Open Market Committee minutes revealed that some Federal Reserve members want to reduce or stop bond-buying purchases this year. Though gold continued to have a negative reaction to this news at the start of the week, silver diverged from its yellow peer and spent much of Monday's trade in positive territory. Unable to hold onto those gains, however, the metal started the week with a New York closing price of $30.16.
On Tuesday, silver got onto a positive track again. This time, the metal managed to finish the day up $0.25 at $30.41. Much credit was given to short covering and bargain hunting, especially in the gold market, which seemed to give silver a boost.
CME Group (NASDAQ: CME) also noted in a market report that March silver seems to have found some measure of support off an extending consolidation pattern on the charts, with a rather extensive series of lows seen just below the $30 level.Some traders think that the $30 level on the charts has become a critical pivot point, CME Group added. That price point indeed seems to be in the minds of some market participants. Ira Epstein of Linn Group, who believes that without a catalyst silver will have difficulty rallying in 2013, said “[a]t $30, silver is no bargain.” Precious metal firm MKS reported that silver continues to see demand under $30 mainly from Chinese buyers, who are keeping the metal propped up for now. On Wednesday, silver aimed for the upside and made some progress intraday. But in addition to a lack of fresh fundamental news to provide support, many market participants showed restraint ahead of the European Central Bank (ECB) meeting scheduled for Thursday. Dragged down by a weak gold market and weak euro, silver lost a nickel for the day.