Spot Silver Daily Price Chart - Latest Silver Prices 13th July 2009

Spot Silver Daily Price Chart - Latest Silver Prices 13th July 2009

As usual spot silver prices responded more aggressively to growing fears that the recent economic recovery may be no more than a false dawn as traders and investors take a reality check and switch out of riskier assets back into safe haven assets such as the Japanese Yen which saw a surge in buying activity towards the end of last week.  Spot silver also suffered from a return to some strength by the US Dollar and this week may come under further pressure as the quarterly earnings season gets into full swing where companies such as Microsoft and Apple will be reporting.  This is even more critical for silver prices given the use of silver in industrial processes.  From a technical perspective silver prices fell to an inter day low on Friday of $12.51 before rallying slightly, losing a total of 21 cents to settle at $12.660 per ounce.  The daily silver chart continues to exhibit bearish dominance with all three moving averages pointing sharply lower and with Friday’s wide spread down bar providing little in the way a change to this picture, other than some profit taking during the latter part of the trading session.  The downwards pressure has increased this morning as silver prices have now penetrated the $12.55 price handle and we are now rapidly approaching the psychological $12.00 per ounce level which may well prove pivotal.  Should this price point be breached then we may see a re-test of the $11.45 per ounce region in due course.

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

Support:    $12.510 (Friday’s low)                                      Resistance: $13.150 (high of 08/07/09)

Support:    $12.410 (low of 04/05/09)                                   Resistance: $12.980 (high of 09/07/09)

Support:    $12.390 (low of 29/04/09)                                   Resistance: $12.910 (Friday’s high)