Spot Silver Prices Chart - 21st January 2009

Spot Silver Prices Chart - 21st January 2009

Spot silver prices closed the day with a gain of a mere 1cent, after failing to draw the same safe haven buying that boosted spot gold prices. Being unable to follow gold prices higher could be explained by a strong US currency, weaker equity markets but perhaps more important was the whole negative sentiment for the metals which saw rising inventories lately and that in turn adds pressure on prices. In addition as I have pointed out in other posts, silver is no longer classified as a precious metal, but is now rated as an industrial one. All the aspects of supply and demand, industrial weakness, and relationship to the other base metal commodities will  play a part in the futures price of spot silver. My own view is that longer term silver prices are likely to rise, once the current economic situation has settled down from the current volatility and turmoil in the markets.

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

Support:    $10.948 (9 day moving average)                               Resistance: $11.600 (high of 09/01/09)

Support:    $10.900 (yesterday’s low)                                   Resistance: $11.540 (high of 06/01/09)

Support:    $10.770 (low of 08/01/09)                                    Resistance: $11.395 (yesterday’s high)