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Silver futures recover sharply

December silver futures rebounded sharply on Friday, reversing most of the losses from Thursday reaction lower, and closing the silver trading session at $23.10 per ounce, marginally below the high of $23.35 per ounce and up $0.65 per ounce on the day. The short term moving averages were once again a key feature of the trading session, with the 9 day moving averages in particular providing excellent support to the low of the day, and confirming once again that the bullish trend for silver futures remains firmly in place. With the 14 day moving average providing a second line of defence below, and the 40 day moving average pointing sharply higher, the longer term sentiment for silver remains firmly bullish.

Indeed following Friday’s dreadful NFP employment figures which came in at -95,000 against a forecast of +1,000, silver futures are likely to climb further, as the FED is forced to implement it’s QE2 programme of quantitative easing, which has been driving bonds, equities and commodities in the last few weeks, with the US dollar weakening as a consequence. In addition, silver has also benefited from the pull through effect from gold, and this combination of factors looks set to continue in the short to medium term, with the technical picture providing a confirmatory view.