Home » Silver futures trading » CME silver future prices – 20th October 2010

CME silver future prices – 20th October 2010

December CME silver futures closed lower yesterday, ending with a wide spread down candle but with a wick to the lower body, as the commodity markets in general and metals in particular reacted to the surprise decision from the Chinese to raise their interest rates, news which took all the markets by surprise. Whilst the news itself was not dramatic it was the unscheduled nature of the release that caused a wave of selling with consequent strength in the US dollar as the prospect of possible tightening in demand spooked the commodities sector. However, as expected, much of this concern has since dissipated with commodities in general recovering this morning, with the US dollar turning lower once again to continue its downwards path once more. Equities have also picked up with the Dow Jones trading higher after the opening bell.

From a technical perspective, the move lower yesterday, saw the low of the day bounce off the 14 day moving average, with the close finding support from the 9 day moving average, both of which suggest that the strong bullish trend of the last few weeks for silver remains firmly in place, as the short term moving averages provided solid platforms. As such we can expect to see silver futures regain the lost ground of yesterday, and move back above the $25 per ounce high of last week, to continue towards our initial target of $26.50 per ounce in due course, with all three moving averages providing strong support below. In early trading this morning silver futures are trading at 23.54 down from the high of 23.87 earlier in the day.