Spot Silver Price Chart - Silver Prices Daily 25th June 2009

Spot Silver Price Chart - Silver Prices Daily 25th June 2009

Although spot gold prices were  able to shake off any influence from a stronger US Dollar spot silver was not so lucky as prices ended the day 2 cents lower on the silver chart on a day which was characterized by hesitation and uncertainty.  The mood of the silver chart mirrored that of the equity markets which are growing ever more sceptical of an early return to economic growth and indeed we are seeing silver behave more as an industrial metal rather than as a precious metal commodity.   From a technical perspective yesterday’s candle was symptomatic, ending the day as a doji which was in stark contrast to gold prices which finished significantly higher on the day.   The candle provides little in the way of any clear trading signal and indeed would suggest a bearish tone in the short term, particularly as the high of the day failed to breach the 9 day moving average which acted as a barrier to any move higher.  In addition the 14 day moving average is about to cross the 40 day moving average and further bearish sentiment is suggested by the failed attempt to clear the $14 per ounce price level which created significant resistance back in early May.   All of this is slightly at odds with the price of gold and we may have to consider that the close, positive correlation between gold and silver may have temporarily fallen out of synch and we will also keep a close eye on the gold/silver ratio which currently stands just below 67.   After the anti climax of the FOMC meeting most markets will be consolidating within their various ranges and we can expect the same for silver.

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

Support:    $13.778 (yesterday’s low)                                   Resistance: $14.380 (high of 19/06/09)

Support:    $13.600 (low of 23/06/09)                                   Resistance: $14.220 (high of 22/06/09)

Support:    $13.410 (low of 20/03/09)                                   Resistance: $14.110 (yesterday’s high)