Silver Breaches $22, Later Takes a Fall

Silver Breaches $22, Later Takes a Fall

Last week, silver traded tantalizingly close to — but didn't manage to reach — $22 per ounce, a level it hasn't attained since October 2013. This week, however, the white metal managed to achieve and pass the $22 mark, hitting a four-month high in the process.

That high came early on Monday, when silver rose to $22.16, boosted by weak US manufacturing data released Friday as well as by news that in January, home prices slowed in China for the first time in 14 months.

Unfortunately for fans of the white metal, the rest of the week has seen silver trade in a lower range. It spent Tuesday moving between $21.71 and $21.98; according to Reuters, that decline was caused by investors acting cautiously ahead of the release of further US data.

Ultimately, the data didn't have much of an effect on the white metal, which early on Wednesday climbed to $21.96; however, midway through that day, silver took a rather precipitous fall, hitting $20.99 at its lowest point. Interestingly, that decline came on a day that "lacked any major data releases," as per's Victor Kerezov. "[M]arket buzz," he said, "is that the move was triggered by the Bank of America Merrill Lynch's technical call to sell gold."

Today, silver has recovered a little from that fall, but not much. Its high point for the day was $21.44, but it managed a close of just $21.26.

Junior company news

Silver Bull Resources (TSX:SVB,NYSEMKT:SVBL) said Tuesday that the National Water Commission of Mexico has granted its subsidiary six permits that will allow it to take 3,500,000 cubic meters per year from the regional aquifer. The water will be used at the company's Sierra Mojada silver-zinc project.