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Silver futures break above $22 per ounce

December silver futures continued to climb higher once again today, pushing through the $22 per ounce level again which we saw breached yesterday, but this time holding firm, and at the time of writing silver is trading at 22.06, up from a low of 21.72 at the start of the day. The upwards trend for silver futures has mirrored that of gold, with only minor pause points along the way as occurred in yesterday’s trading session, with the industrial metal pausing for breath in a small doji candle formation.

The trend higher throughout September has been fully supported by both the 9 and 14 day moving averages with the former in particular providing excellent support to the move, and providing a cushion in any short term pullback or during the low of a trading session – always a strong signal that momentum for the move remains intact. In addition both the 14 day and 40 day moving averages continue to point sharply higher, all adding to the positive sentiment for silver, which continues to receive further support from the fundamental backdrop, as risk on appetite continues to drive equity markets higher, with a consequent demand for silver as a result. Finally, the strong bull trend for gold, also provides a consistent pull through effect for silver as the two metals trade higher in tandem. The long term outlook remains firmly bullish as we now test the high of early 2008 at $22.08 once again, and a break and hold above this price point will provide a further plank of support for the rally.