Recent weakness in the US dollar does not appear to have favoured either gold or silver with both pulling back from recent highs with silver in particular breaking below all three short term moving averages on Friday and continuing the slide lower once again this morning. Indeed the 9 day moving average on the silver chart is now crossing below the 40 day ma adding further downwards pressure, and last week’s attempt to rally was capped by the 14 day ma which is sitting below the $29.50 price point.
The same picture is reflected on the daily gold chart where the mid week attempt to rally hit resistance from the bunched short term moving averages and the 9 day in particular prevented any further rally on Friday. As such we are now approaching some key support zones, particularly around the $1350 per ounce level but should these be breached then we could see a re-test of support in the $1329 per ounce region. Finally the 14 day ma is also crossing the 40 day, suggesting further weakness in the short to medium term.