Friday, 26 Nov 2010

Silver Ends Week on a Low Note

Silver prices finished down this week largely tracking the price of gold lower.

While the long term upward trend remains firmly intact the price may have arrived at an attractive level for entering into the trend.

Silver prices quietly moved lower throughout the week as the Thanksgiving holiday approached. With US markets being closed yesterday, silver prices were relatively unchanged. However, today the commodity fell sharply, dropping to the minor support level at $26.40, and is currently trading at $26.65. This takes the price of spot silver down 2.2% on the week.

The fall in the price comes in line with a sharp drop in the value of gold. The price of gold finished lower today at $1363.43, after opening the day at $1372.73.

Worries over the spread of the European sovereign debt crisis sank both commodities and equities.

The price of silver continues to trade inside a triangular consolidation pattern that begins at the all-time high for the pair at $29.34 and extends higher from the long term rising trend line originating in late August.