Silver breached the record high of 40800 on the back of rally in gold prices, and rising physical demand. The long-awaited breakout in silver prices has offered an extremely positive sign to silver bulls. The Gold Silver ratio is dropping like a rock to current 50.99. The 50.68 was support back in May of 2008 but below here opens up 47.52 the low that year. Silver opened at 39489. The metal reached its intraday low of 39315 during quiet early morning range trading as the stronger dollar dampened investor’s enthusiasm for commodities. Interest in the metal was rejuvenated as heavy fund buying drove silver higher, triggering stops around the 40000 and 40500 levels, eventually reaching its multi year high of 40866. Profit taking after a brief rest took the metal to its close of 40730. Now support for the silver is seen at 39741 and below could see a test of 38753. Resistance is now likely to be seen at 41292, a move above could see prices testing 41855.

Trading Ideas:

Silver trading range is 38753-41855.

Silver breached the record high on the back of rally in gold prices

Silver is having resistance at 40900 and support at 40520 level.

Holdings at ishares silver trust rose by 57.79 tonnes to 10253.50 tonnes