The price of silver fixed at 464.25 cents an ounce on Tuesday, the lowest level since March 27, 1995 on follow-up selling after key support was fractured on Monday. At 1130 GMT spot silver was quoted at $4.63/$4.65 an ounce, two cents down. On Monday it breached $4.70 and touched a two-year low of $4.59 on fund selling. Dealers said the expiry on Monday of over-the-counter options, which had been providing a cushion above $4.70, erased silver's prospects for recovery with a plunge to $4.33 looking increasingly likely. They said the losses had been mainly technically-inspired. "The weekly chart was just holding above a long-term trendline going back to March 1993 but that was corrupted recently (when the price went under $4.70)," a dealer said.
"It needs to move ahead again. If silver stays under $4.72 this week, that is bearish," he added.
Tuesday's fixing is the lowest since 463.00 cents on March 27, 1995. Previously, the only fixing to compare with the March 1995 low was 465.40 on January 15 this year.
"Silver broke down from its consolidation phase. You can't make a good case for it," commented another dealer.
Karen Jones, analyst at Credit Suisse First Boston, said a 20-point measurement from the bottom of silver's range of $4.65 would take the market down to $4.45.
"At $4.45 there is not much support apart from the actual measurement. I think we are now looking towards the low of 4.33," said Jones.
"I think it will now struggle to regain $4.70," she added.
