Spot Silver (XAGUSD) : The superstar metal has our FY 2011 target in sight
Outperforming old by a significant margin, it looks like our sing trade target at US$ 45 will be hit far sooner than originally thought, opening up the secondary target at US$ 50
• Speculative cash has piled in to silver of late hence the stratospheric move to just short of 43, there is little reason to believe a top is anywhere near close to being created on the chart – that will have to wait for a while yet it seems.
• Closing at 42.860, there is little in the way of decent support until 38 or so, but 40 to 40.800 is probably as low as it will go, all things remaining equal….and no sudden return to earth on the US monetary policy front.
• On a VST basis there is some support at 41.940, again at 41.420 and then as noted above nearer 40.800