Spot Silver Prices - Current Silver Price Chart 2nd July 2009

Spot Silver Prices - Current Silver Price Chart 2nd July 2009

Spot silver prices too ended the day largely higher on the back of a weaker US Dollar and comments from China about the need to discuss the issue of a new global currency at next week’s G8 summit in Italy.  However, the rise in silver was more muted, most likely as a result of a sharp fall in the price of crude oil, as the markets start to question whether the gains seen in the first half of 2009 will continue in Q2. Overall spot silver gained 12 cents to close at $13.787 per ounce.  From a technical perspective the silver chart has a decidedly more bearish tone than that for spot gold, and despite a minor recovery yesterday the high of the day failed to penetrate the 9 day moving average which acted as a barrier to any move higher, not an encouraging signal for silver prices, and with the 40 day crossing above, all three moving averages are now adding pressure to the downside.  It will take a move of some significance to create the momentum required if there is to be any reversal from this slow, downward slide, which is at slight odds with spot gold, which is currently managing to maintain an element of bullish sentiment.

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

Support:    $13.570 (yesterday’s low)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.250 (low of 06/05/09)                                   Resistance: $14.140 (high of 30/06/09)

Support:    $12.980 (low of 05/05/09)                                   Resistance: $13.868 (yesterday’s high)