By FXEmpire.com
Analysis and Recommendations:
Silver is trading down -1.002 following gold straight down today. Silver is holding right above the 30.00 price as 30.718. Just three weeks ago the markets were expecting silver to trade below the 30.00 price when it moved over the 32.00 level surprising investors.
Gold fell 13.05 in today’s session to trade at 1629.75. The pair are continuing to fall as markets get close to closing for the day.
With the FOMC meeting on Tuesday, investors are positioning themselves for the possible comments and monetary easing from the Fed.
o On a week-on-week basis, spot silver prices gained around 0.6 percent.
o Silver May contract gained around 1.2 percent.
o Spot silver prices traded higher in the last week, taking cues from weakness in the US dollar index and revival in the global markets due to successful Spanish bond auction.
o Additionally, upside movement in base metals complex also helped further gains in prices last week.
The white metal touched a high of $32.01/oz and closed its trading session at $ 31.64/oz in the last week.
o On a week-on-week basis, holdings in the iShares Silver Trust, the world’s largest silver-backed exchange-traded fund, declined by 0.4 percent to 9,552.14 tonnes by 20th April 2012 from the previous level of 9591.39 tonnes on 13th April 2012.
We expect silver to trade lower this week, taking cues from fall in gold prices, a stronger dollar and weak sentiments in the markets. Silver will also take cues from movement in base metals pack.
Economic Events scheduled for April 24, 2012 that affect the European and American Markets
07:00 EUR Finnish Unemployment Rate 7.40%
The unemployment rate represents the number of unemployed persons expressed as a percentage of the labor force. The unemployment rate for a particular age/sex group is the number of unemployed in that group expressed as a percentage of the labor force for that group.
10:00 EUR Industrial New Orders (MoM) -0.5% -2.3%
Industrial New Orders measures the change in the total value of new purchase orders placed with manufacturers. It is a leading indicator of production. A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
15:00 USD CB Consumer Confidence 70.3 70.8
Conference Board (CB) Consumer Confidence measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism.
15:00 USD New Home Sales 320K 313K
New Home Sales measures the annualized number of new single-family homes that were sold during the previous month. This report tends to have more impact when it’s released ahead of Existing Home Sales because the reports are tightly correlated
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Originally posted here