spot silver

Spot Silver 4 Nov 2010

The daily chart for spot silver mirrors that of gold with yesterday’s deep test of the 9 and 14 day moving averages giving us a strong signal of bullish intent which has been duly delivered in today’s silver trading with the metal surging above $26 per ounce and climbing over $1 per ounce on the day.  Our end of year target of $26.50 now looks a little conservative and, as such, we feel that perhaps $27.50 or even $28 per ounce is a more realistic estimate for the commodity.  Following last night’s FED statement, commodities in general, and gold and silver in particular, have made strong gains on the back of a weaker dollar, a picture which is likely to remain in place for some time to come and we can therefore expect the bullish trend for silver to continue in the medium to longer term.  All four moving averages remain fully supportive and with the breakout above the $25 per ounce price point now complete, this has created a solid platform of support for a strong and sustained move higher over the next few weeks.