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Silver futures follow gold futures higher

December silver futures continued to forge ahead on Friday, ending with yet another strong performance for the industrial metal which closed the trading week on the CME  Globex  futures market at $21.34 per ounce, having touched an intra day high of $21.50, before closing with a wide spread up candle with a small wick to the upper body. The current trend has remained virtually unbroken in the last three weeks, with the silver market only taking a breather on Tuesday with a minor pullback, before pushing higher once again. The trend higher on the daily chart is fully supported by all three moving averages, with the 9 day moving average in particular offering excellent first line support to the trend, with each minor pullback finding a firm platform and a consequent continuation of the move – always a strong signal that the trend is firmly established. As such, we can expect to see silver futures break above the $22 per ounce price level and beyond in due course.

The fundamental picture is also helping to drive the commodity higher, as the rally in equities which began in early September shows no signs of slowing at present, helping to drive demand for silver, with the pull through effect of gold and a weak US dollar, also helping the commodity at present.