Spot Silver Prices - Silver Price Chart Daily Silver Price 29th May 2009

Spot Silver Prices - Silver Price Chart Daily Silver Price 29th May 2009

Silver prices continue to be pushed higher by a combination of fund buying and momentum trading as spot price silver ended the day by gaining 53 cents to settle at $15.190 per ounce.  Indeed demand for silver has continued to grow in 2009 to the extent that the US Mint is seeing an almost 70% increase in coin sales in the first quarter compared with the same period last year.  This surge in demand comes as investors become more risk averse  following the demise of Lehman Brothers last year.   Silver investors have also turned to specialist exchange traded funds which too have seen a dramatic increase of inflows.  From a technical perspective yesterday’s wide spread up bar added considerable momentum to the bullish tone on the silver chart following the last four days of sideways consolidation, breaking through the $15 per ounce price point and holding above this psychological region.  This dramatic move up has continued in early trading this morning, which now places the strong resistance at $16.40 per ounce firmly in our sights, and is the next key area for silver prices.  Only time will tell whether this significant barrier is enough to halt the current upwards move or whether we will see this region penetrated in due course.  With all three moving averages now pointing firmly higher and with little in the way of resistance ahead until we meet the price target outlined above, there is no reason to suppose that we should not see this momentum continue for some days to come.  The only caveat for today is that with the weekend ahead, and following the strong surge of yesterday and this morning, we may see traders squaring positions and taking profits with a view to re-entering the market on Monday as the bull move continues.

The short, medium and long term are bullish.

Support:    $14.620 (yesterday’s low)                                   Resistance: $16.210 (high of 08/08/09)

Support:    $14.430 (low of 27/05/09)                                   Resistance: $15.440 (high of 11/08/08)

Support:    $14.280 (low of 26/05/09)                                   Resistance: $15.260 (yesterday’s high)