The domestic prices have also witnessed similar uptrend. With the latest rally, the prospects for silver has improved drastically. In fact, the technical position suggests that there are great chances of it touching its 1998 high once again.

The main signal has come from the fact that it has moved above the $5.37 level. This level was considered as a resistance level. It did fall once it touched this level two weeks ago. However, in the second attempt made last week, it managed to move above this level. This is nothing but a show of underlying strength the white metal developing. Baring the first two months, it remained weak throughout the year in 1998. It showed a correction which lasted till the level of $4.66 level. Earlier, in 1997, it showed a rally from a low level of $4.20 which topped out in February 1998.

However,performance has been once again impressive in the past two months.The next resistance level for the white metal lies at $5.87. A fair amount of selling pressure is expected around this level and it may give some correction once it reaches this level.

But once it moves above this level, then the next target is 1998's high of $7.62 and in all probability, it might cross this level and touch the magic figure of $10. As for silver traders, gradual purchases are recommended on every decline. Large position can be taken only when the international prices cross the $5.87 level.