Precious metals are falling…

Both gold and silver prices peaked a couple weeks ago.

[ad#Google Adsense 336×280-IA]Since then, the metals have given back all their gains since the Federal Reserve announced a third round of quantitative easing.

But the decline may be just about over.

As you can see in the chart below, silver is trading just above its “200-day moving average” (DMA).

Technical analysts often use this line to distinguish between bull markets and bear markets.

If an asset is trading above the 200-DMA, it’s in a bull market. If an asset is trading below the 200-DMA, the bear is in charge.

If silver stays in a genuine bull market, the price should stay above its 200-DMA – or, at least, not fall much below it for long.

– Jeff Clark

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Source: Market Notes