The technical condition of silver continues to deteriorate, with the failure below the highs of last Spring being compounded by the failure, last week, of the intermediate uptrend in force since last May. This is a considerably weaker picture than that for gold. With the dollar expected to make further gains in coming weeks, the immediate prospect is for a continuation of the current decline initially to support in the $6.10 area, and, should this fail, on down to the stronger support near the lows of last May in the $5.50 area.
Gold’s ability to remain within its long-term uptrend and the outlook for the dollar are, of course, factors that will have a crucial bearing on the outlook for the silver price.
