SILVER

For a change, silver has managed an upside breakout on the charts and the market seems to be trading in lockstep with the gold market again. With the rise overnight, March silver reached the highest level since November 17th, with most of that upside action seemingly the result of residual calm from the Euro zone. Certainly silver is benefiting from a gradual improvement in US economic data and that might be expected again today, but the silver market is probably being held back by residual fears that the Euro zone debacle could regain the spot light without notice. Like gold, silver did see some supportive private silver price forecasts for next year, with those bullish targets expected to come on the back of strong investor demand. Silver looks to trade like a classic physical commodity market today and the trade is expecting US data to at least underpin the initial gains in silver prices this morning. Comex Silver Stocks were 108.146 million ounces down 45,716 ounces. Silver stocks have declined 11 of the last 20 days. Support in March silver moves up to $33.12 today and there might be little in the way of resistance until the $33.65 level on the charts. It would appear that silver is poised to return to levels above the $34.00 mark off a series of favorable US data points this morning. In fact, March silver might be destined to settle into a new consolidation zone on the charts bound by $33.83 and $35.27.