If you are new to trading in commodities, then silver provides an ideal starting point, as the volatility of this market is relatively low. I post an update on a daily basis so I hope the comments will help you to make a start in trading in precious metals. So what happened on Friday? – well silver prices crossed below the 9 day moving average on the same news of a stronger US dollar ( as for gold prices) and later rallied and closed above the indicator, but still down for the day. New developments about the auto bailout saga in US with the White House announcing that it will provide a massive emergency loan look set to make an impact on the white metal market, which rallied more than gold in percentage terms. Although silver will remain close to the US dollar as well as gold it seems that its role as primarily an industrial metal will exercise additional influence on its price.

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

Support:    $10.530 (Friday’s low)                                     Resistance: $11.850 (high of 07/10/08)

Support:    $10.420 (low of 16/12/08)                                   Resistance: $11.595 (high of 17/12/08)

Support:    $10.210 (low of 15/12/08)                                   Resistance: $11.470 (high of 18/12/08)