Last week, silver registered a second weekly loss as European finance ministers refused to release funds on approving a rescue package for Greece. However, the market posted only a minor net decline.
Buying pressures has halted as the appetite for silver which made it the best performing metal in 2012 has moderated. Since April last year the market has seen a pattern of selling which registered lower highs in August, then October and now in February.
The trend is down, but the immediate outlook is neutral as no clear strategic signal has been given. Gains above 34.52 then 35.70 are needed to rejuvenate this year’s bullish sentiment while losses beneath 31.25 and 30.65 are required to indicate a new bearish phase.
The news that further budget cuts have been approved by the Greek government, after trading closed for the week on Friday, should be positive for Silver this week. As the second bailout for the country can now get European finance minister approval.
