Silver Spot Prices - Daily Silver Prices 24th June 2009

Silver Spot Prices - Daily Silver Prices 24th June 2009

Spot silver prices initially fell to an inter day low of $13.60, a price last seen on 6th May, but they later recovered as sustained Dollar weakness entered the market and spot silver followed the gold price upwards eventually gaining 13 cents to finish at $13.882 per ounce.  From a technical perspective the daily silver chart is a little less clear than for gold which produced a well defined hammer signal (a possible strong reversal in spot gold prices), which was not replicated quite so well for silver.  During the day spot silver prices found some support at the $13.70 price point and above, suggesting that we could see a short term reversal, which is reinforced by the technical picture on the gold chart.  However, the technical picture is currently heavily influenced by the wider economic landscape and with the FOMC statement due out later today, which is widely expected to be Dollar negative, we should see a rebound in the price of silver later in the trading session.  Part of the reason that the daily candle on the silver is not as well defined as that of for gold is partly explained by silver dual role, both as a precious metal and also as an industrial commodity.  The question, of course, for traders will be the extent to which Dollar weakness and equity strength interplay and how the relationship between gold and silver reacts as a result.   Under normal circumstances should gold prices move higher, as expected, on the FOMC statement, then we should see silver prices follow suit.  For any sustained move higher, in the medium term, we need to see a break above all three moving averages and a hold above the $14.50 per ounce price point once again.  If the US Dollar falls, as expected, we may even see this later this evening.

The short term trend is bullish, the medium term trend is sideways while the long term trend is bullish.

Support:    $13.600 (yesterday’s low)                                   Resistance: $14.220 (high of 22/06/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $14.072 (high of 18/05/09)

Support:    $13.250 (low of 06/03/09)                                   Resistance: $13.940 (yesterday’s high)