By FXEmpire.com
Analysis and Recommendations:
Silver taking cues from fall in gold prices coupled with strength in the US dollar index, silver prices in the international markets have dropped sharply by 3 percent last week. Silver being an industrial metal also took cues from downside in base metals pack. Silver is trading at 30.13 having dropped in today’s session below 30.00
Unfavorable economic data from the US and Euro Zone front coupled with weak sentiments in the global markets exerted downside pressure on the base metals pack on the LME last week. US non-farm employment change increased less than expected which escalated concerns over economic growth in the world’s largest economy. Additionally, strength in the US dollar index also acted as a negative factor for metal prices.
Rise in risk aversion in the global markets due to escalating concerns with respect to Euro Zone debt worries will lead to strength in the US dollar today. Taking cues from this, we expect gold and silver to trade lower today. However, depreciation in the Rupee may cushion sharp downside on the domestic bourses.
Economic Releases May 7, 2012 actual v. forecast
|
AUD |
Building Approvals (MoM) |
7.4% |
3.1% |
-8.8% |
|
AUD |
NAB Business Confidence |
4 |
3 |
|
|
AUD |
Retail Sales (MoM) |
0.9% |
0.2% |
0.3% |
|
CHF |
Unemployment Rate |
3.1% |
3.1% |
3.0% |
|
CHF |
CPI (MoM) |
0.1% |
0.2% |
0.6% |
|
EUR |
German Factory Orders (MoM) |
2.2% |
0.5% |
0.6% |
|
Building Permits (MoM) |
4.7% |
-1.5% |
7.6% |
Economic Events for May 8, 2012
00:01 GBP RICS House Price Balance -10% -10%
02:30 AUD Trade Balance -1.40B -0.48B
06:45 CHF GDP 0.1%
06:45 CHF SECO Consumer Climate -18 -19
13:15 CAD Housing Starts 202K 216K
Government Bond Auctions (this week)
Date Time Country
May 08 09:15 Austria
May 08 09:30 Belgium
May 08 14:30 UK
May 08 15:30 Italy
May 08 17:00 US
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here a current Silver Chart.
Originally posted here
