December silver started this holiday shortened week trading down to a low of 25.985 before coming off that low and trading sideways the rest of the week. There haven’t been any major economic data surprises to push this market one way or the other with the ECB meeting not showing any indication of fresh stimulus and today’s US inflation reading looking to come in line with expectations. Recently the silver market is following the U.S. dollar moves, which has seen some strength lately, hindering a push higher in silver. Also curbing any move higher is disappointing demand with outflows in silver ETFs. This has been the sixth straight decline but despite that, silver holdings are still above levels from this time last year. The December silver contract has support at 26.30 and then the 25.00 level with resistance at 28.10. The market would need to close above this week’s high of 27.755 in order to get back to a trend higher and test resistance levels. As of now I think that is going to depend mostly on what the US dollar and the stock market does. It will also be interesting to see if silver remains trading like a commodity, in line with the stock market, or goes back to the traditional relationship, seeing strength in a risk off environment.