Silver Spot Prices - Daily Silver Chart 30th June 2009

Silver Spot Prices - Daily Silver Chart 30th June 2009

Like gold, spot silver prices moved along with the US Dollar but slipped more than gold as a result of technical factors as sell stops where triggered once spot silver prices touched the $14.00 per ounce price point and despite bouncing back from its intraday low of $13.830 per ounce silver prices still posted a loss of 17 cents to finish at $13.890 per ounce.   Like gold silver benefited earlier in the year from unprecedented investor demand following the collapse of Lehman Brothers.  Indeed mints around the world almost doubled their silver coin production in the first quarter in response to a surge of investor interest in the metal.  This followed an extraordinary buying spree for coins and bars by silver investors last year that was also accompanied by a record surge of inflows into silver backed exchange traded funds.   The 2009 Silver Survey produced by GFMS in conjunction with the Silver Institute, the Industry association, confirmed that sales of silver coins and medals jumped 63% to a record 2,019 tonnes in 2008 and demand continuing to rise in 2009 with the US Mint seeing a near 70% increase in coin sales in the first quarter compared with the same period last year.  Despite this bullish fundamental picture from a technical perspective the daily silver chart has a distinctly bearish flavour and there are several key technical elements which need to be considered carefully at this juncture.  Firstly, yesterday’s candle failed to hold above the 9 day moving average, not a good signal, and in addition with the 14 day moving average having crossed the 40 this is adding to the bearish pressure.  The key to any deeper move lower will largely depend on whether the support now in place at the $13.75 price level can provide a solid base and prevent any move lower.  However, should this fail to hold we could see silver prices move back to re-test the strong support in the $13.50 per ounce region and below.

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

Support:    $13.830 (yesterday’s low)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.790 (low of 25/06/09)                                   Resistance: $14.323 (high of 26/06/09)

Support:    $13.600 (low of 23/06/09)                                   Resistance: $14.147 (yesterday’s high)