Spot Silver Prices - Silver Chart Latest Silver Prices 7th July 2009

Spot Silver Prices - Silver Chart Latest Silver Prices 7th July 2009

The Indian Government’s decision to double import duty on both gold and silver, plus a weaker US Dollar and the loss of momentum in equity markets are all contributing to the fall in spot silver prices, which at one point during yesterday’s trading session touched a low of $12.987 per ounce, a level not seen since 5th May.  Overall spot silver prices ended the trading session 9 cents down ending the day at $13.300 per ounce.  From a technical perspective the bearish picture on the silver chart is more pronounced than that for gold, but this is often the case where silver tends to outperform gold on a percentage basis both when moving up and also when falling.  Yesterday’s candle was interesting in that technically it created a hammer suggesting that silver prices may have found some support at this price level after their recent decline.  With a deep lower shadow and small upper body such a signal usually suggests the first sign that silver bulls are entering the market and buying what they consider to be “cheaper prices”.  Naturally we need to wait for this signal to be confirmed and this will only be validated should we see a break and hold above all three moving averages coupled with a breach of the strong resistance now in place in the $14 per ounce level.  Should silver prices be able to reclaim this technical area of the chart then this may provide the platform for a sustained rally, but much will depend on investor appetite for risk in the broader market and how this translates into equities and US Dollar strength or weakness.

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

Support:    $12.987 (yesterday’s low)                                   Resistance: $13.800 (high of 02/07/09)

Support:    $12.980 (low of 05/05/09)                                   Resistance: $13.592 (high of 05/05/09)

Support:    $12.780 (low of 27/04/09)                                   Resistance: $13.447 (yesterday’s high)