FUNDAMENTALS

Silver futures remained stout despite decline in gold prices and weakening crude oil prices on Thursday, as supply concerns in Mexico and Australia supported the prices. Silver for March delivery on Comex added 11.5 cents to close the session at $16.01 an ounce.

The labor issues in Mexico threatening production at key silver mine rose supply concerns in silver market. Some 25,000 workers staged a nationwide mining strike Wednesday, and silver miner Industrias Penoles said it affected mining and refining operations.

Further, a suspension of operations at the Cannington mine in Australia also boosted silver prices. BHP Billiton had closed a very significant mine in Australia, one of the richest mines they have due to a fatal accident.

The crude oil futures slipped lower on Thursday as concerns of economic slowdown in US and corresponding decline in energy demand pressured the prices. Crude-oil futures for February delivery fell 71 cents to $90.13 a barrel on the NYMEX.

TECHNICALS

The prices closed above short-term term EMA, which supports bulls. Long upper shadow of candlestick shows tentativeness at higher levels. MACD is running down in positive territory, showing decrease in bullish momentum. Stochastic is heading downwards in normal region. Prices are likely to see volatile movements with weak bias.

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