The reasons are several. The short and medium term moving averages (12-day and 48-day) have entered a negative phase. Clearly, the short term moving average has dipped below medium term moving average, showing signs of weakness.

This becomes more serious if one were to consider a lower top formed by these averages.

As far as the price movement is concerned, the price has failed to cross its 52-week high of $7.6 per ounce recorded in the last week of January this year. Attempts to cross this levels have failed often and the price formed a lower top of $6.7 during last month. Had the precious metal gained any strength, the price would have crossed the 52-week high in its recent rally during the month of March.

Now, with the price dipping below the moving averages, the weakness ismore evident.

From trend analysis point of view, while the one-year trend line is yet to be breached, the 6-month upward trend line has been broken recently -- another sign of short-term weakness.

The position of oscillators like Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) is also far from impressive. The 21-day RSI has recently broken its short-term support levels and dipped to a 9-month low, indicating a strong downward momentum.

As far as the medium term MACD is concerned, it is seeking low levels and is in negative mood. All these factors are nothing but pointers to bearish short-term outlook.

As such, while the international prices are likely to remain weak, the domestic prices should also react accordingly. Besides this, another factor which could act against the domestic silver prices is the expectation of a stable rupee. In effect, the domestic silver prices are likely to remain weak in the coming months.