Silver prices are poised to climb as issues related to the European debt crisis have investors looking for the safe haven status of hard assets such as silver. Silver climbed higher yesterday bouncing off of strong support to close above $36 for the first time in two weeks.The European debt crisis created concerns Tuesday as officials worried that financial markets could thwart efforts to get countries such as Greece back on even fiscal footing. Moody's Investors Service added to those concerns, warning Tuesday that a Greek debt restructuring could affect the credit ratings of other European governments and would probably also lead to rating downgrades for Greek banks.

Europe's struggle to regain investor confidence in its high-debt member states has suffered a series of setbacks since the end of last week, fueling speculation that at least Greece might have to seek more relief from creditors.

Sentiment Is Bullish -Silver prices have moved higher already, as investors moved into hard assets such as commodities. Silver bounced off the 100-day moving average on the day that Goldman Sachs upgraded Brent crude prices to $130 dollars a barrel. Silver sliced through resistance near 36.10 trading above 37$. Silver is poised to test higher resistance at 39.50, which is the 50-day moving average and the long term trajectory seems to mark 41$ as the preliminary target and 44 and the secondary. Support is seen below the 34 level.

Copyright 2011 eToro Blog

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.

RELATED STORIES