Home » Spot Silver Daily News » Spot Silver Prices – Silver Price Chart 3rd June 2009

Spot Silver Prices – Silver Price Chart 3rd June 2009

Silver Spot Price Chart - Daily Silver Prices 3rd June 2009

Silver Spot Price Chart - Daily Silver Prices 3rd June 2009

It was another day of solid gains for the price of silver yesterday, as silver prices rose along with gold, largely in response to a weaker US dollar which, despite expectations, was not lifted by Timothy Geithner’s comments following a speech in China, with spot silver breaching the $16.00/oz level for the first time since August 2008, and eventually closing the day slightly lower at $15.950/oz, a gain of 40 cents on the day. From a technical perspective yesterday’s candle closed as a wide spread up bar, which not only confirmed that the bullish tone remains firmly in place, but also that the possible weakness seen in the daily chart on Monday, can now be ignored as a failed signal, as we look towards a hold above the $16 per ounce level, and a move towards our initial target of $16.50 per ounce in due course. With all three moving averages pointing sharply higher, there is nothing on the daily silver chart at present to suggest that this momentum is likely to end soon, with the only caveat being the NFP data on Friday, which could provide a temporary pullback if the numbers are not as expected. In addition, given the strong performance for both gold and silver in the last few weeks it is inevitable that we will see the market take a breather and consolidate at some point in the near future.

Many analysts now believe that silver is undervalued against gold and that in due course we will see a ‘slingshot’ effect, with the price of silver rising faster than gold as the US dollar continues its decline driven lower by the quantitative easing measures being promoted from Washington. As oil expert Byron King put it so succintly at a recent conference – “In general, the precious metals are up because the big spending politicians in Washington have no respect for the US dollar. Break out the black crepe and armbands of mourning for the US dollar!”

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

Support:    $15.440 (yesterday’s low)                                   Resistance: $16.390 (low of 06/08/09)

Support:    $15.130 (low of 29/05/09)                                   Resistance: $16.210 (high of 08/08/09)

Support:    $14.620 (low of 28/05/09)                                   Resistance: $16.003 (yesterday’s high)