London Silver Fixes At 18-Month Low

Silver fixed at $4.945 per ounce, the lowest since March 30, 1995 in the aftermath of Thursday's late sell-off.

But after New York opened the $4.90 support fell, sparking selling in gold, platinum and to a lesser extent, palladium.

Palladium fixed at $119.50 equalling the low of September 16, 1993 as it came under pressure.

Gold weakened to flirt with the $381.50 support and fixed at $381.75, the lowest since July 9, 1996 versus $382.50 earlier.

Analysts said the key support for gold had been $382.00 then $381.50 which would be followed by $378.00. But the market saw only relatively light sales after recent heavy short selling.

 

The sharp drop in silver, initiated in New York by disillusioned investors, proved the market's vulnerability after days of hovering just above $5.00, analysts said.

There could be some more to go on silver which isn't too oversold yet. I'd stay short till it was back over $4.95,