Precious metals gold and silver have been consolidating for the past year after making new highs in 2010. Based on technical price action, it seems that there is a bullish scenario coming ahead.
But with the fed pulling any extensions on further quantitative easing in the form of QE3 or other programs, the bullish case has lately been criticized.
There are also very serious issues looming in Europe and across the world that are far from resolution. With few tools left in the toolbox to stimulate world economies, further easing can never be ruled out.
Then the silver bar, after breaking through strong resistance around $19- $20 in September 2012 went almost parabolic in spring 2011 prior to giving up most of its gains in the last year.
There seems to be significant support around $26 on SLV, however this level has been tested quite frequently over recent months and this again raises caution. While silver owes some of its moves to its industrial application, the high correlation between the two metals is not to be ignored.