Silver Spot Price Chart - Spot Silver Prices 8th May 2009

As usual spot price silver tracked gold, initially moving up and above the $14.00 per ounce level but as with gold, traders and investors then indulged in profit taking ahead of today’s non farm payroll data.  So far this week spot silver has outperformed gold for a variety of reasons including a growing perception that it is undervalued compared with gold, that any economic recovery will lead to an increase of silver as an industrial metal and that the commodity market in general is likely to provide a better return.  From a technical perspective yesterday’s candle closed higher but with a deep upper shadow for the reasons outlined above, and with all three moving averages now providing support to a further move higher, there is no reason to suppose that we should not see spot silver break above $14.00 per ounce once again ahead of a move to re-test the highs of mid March in the $14.50 region.  A further factor at present which is also helping the price of silver move higher is the current ongoing supply issues in the copper market which is acting as a catalyst for other commodities, such as silver.

The short term trend is sideways while medium and long term trends are bullish.

Support:    $13.650 (yesterday’s low)                                   Resistance: $14.610 (high of 20/02/09)

Support:    $13.590 (low of 23/03/09)                                   Resistance: $14.400 (high of 19/02/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $14.145 (yesterday’s high)