By Michelle Smith — Exclusive to Silver Investing News
Silver appears trapped in a struggle between the bull and the bear. Positive news from the US continues to put pressure on the market, which is struggling to regain its early-year upward momentum. The winning camp remains to be seen, but after another weak week for silver, it's becoming harder to dismiss forecasts of a downward trend. Silver prices slid last Friday after the US Department of Labor released a better-than-expected jobs report, but the metal was able to shake off downward pressure fairly quickly. Some of the boost appears to have come from concerns stemming from talk of US military action against Iran and Syria. Though it had to fight through a wide trading range, silver managed to recover some ground lost in previous sessions. China's trade deficit During Sunday's overnight trading silver prices didn't manage to put up a new high, with reports that China's trade deficit was the largest in over 20 years reigniting fears of a slowdown. Investors must remember that China has a super-sized silver appetite, so for many in the market a weak Chinese economy translates into reduced silver demand. On Monday North America woke up to the same news, as well as the weak silver market that accompanied it. Silver seemed trapped within Friday's trading range and couldn't get any positive direction from gold as that market was also weak. The pressure on silver was starting to paint a potentially dismal picture for the bulls. Market watchers began pointing to the metal's 200-day moving average and warned that should silver prices drop below that level, a sell-off is likely to occur. Another blow from the Fed On Tuesday, silver started off in a positive direction, but was drawn off track by the Federal Open Market Committee (FOMC) meeting.