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Silver at 4-Year Low as Commodities Fall in Run to Safety

September 30, 2014 at 18:42 by Andriy Moraru

Silver’s downward rally, which lasts from mid-July has pushed the price to another multi-year low today. Gold, oil, platinum, palladium, and agricultural commodities drop in major flight to safety spurred by the poor macroeconomic releases both from the eurozone and the United States.

Slow inflation and rising unemployment in the euro area are poorly affecting the global investment climate. Surprisingly, neither silver nor gold demonstrate the ability to serve as a safe haven investment when the markets are in a risk-averting mood. In such circumstances the only beneficiaries are the US dollar and the Australian currency (traders are expecting even tighter monetary policy from RBA).

While analysts at major investment institutions are cutting their forecasts for many commodities, silver looks like an underdog even compared to most other trading instruments. It has already passed all the nearest support levels and is heading closer to its 2010 low of $14.60 per troy ounce.

The spot price for silver fell from $17.48 to $16.97 per troy ounce as of 18:39 GMT today. The daily low was set at $16.82 per troy ounce, which is the minimum level since March 2010.

If you have any questions and comments on the commodities today, use the form below to reply.

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