By FXEmpire.com

Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of silver (eg. 30000 grams) at a predetermined price on a future delivery date.

Silver is a soft, shiny and heavy metallic element with a brilliant white luster. A very ductile and malleable metal, its thermal and electrical conductivity is the highest of all known metals.

Besides being used as a store of value, other main uses of silver include applications in areas such as electronics, photography and as antiseptics.

Consumers and producers of silver can manage silver price risk by purchasing and selling silver futures. Silver producers can employ a short hedge to lock in a selling price for the silver they produce while businesses that require silver can utilize a long hedge to secure a purchase price for the commodity they need.

Silver futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable silver price movement. Speculators buy silver futures when they believe that silver prices will go up. Conversely, they will sell silver futures when they think that silver prices will fall.

Weekly Analysis and Recommendations:

Silver followed in the tracks of gold all week, rising and falling right behind. It was a week all about eco and fundamental data. On Friday, the markets were disappointed with the latest GDP release from the US showing growth had slowed to 2.2%, weakening the USD, as speculators turned back to gold and metals. Silver ended the week at 31.295

Date

Last

Open

High

Low

Change %

Apr 27, 2012

31.295

31.108

31.468

30.947

0.59%

Apr 26, 2012

31.110

30.735

31.333

30.665

1.21%

Apr 25, 2012

30.738

30.853

31.030

29.997

-0.38%

Apr 24, 2012

30.855

30.837

31.175

30.723

0.08%

Apr 23, 2012

30.830

31.708

31.747

30.523

-2.74%

The U.S. economy slowed more than expected in the first quarter, the Commerce Department reported Friday. Real gross domestic product rose at a 2.2% annualized rate in the first quarter, down from a 3.0% increase in the fourth quarter.

UoM consumer sentiment rose unexpectedly last month, data showed on Friday.
In a report, the University of Michigan said that consumer sentiment rose to a seasonally adjusted 76.4, from 75.7 in the preceding month.
Analysts had expected UoM consumer sentiment to remain unchanged at 75.7 last month.

What’s more, a string of recent data suggesting some softening in the economy has raised concerns about whether the recovery will accelerate in the months ahead. A downturn in Europe could hurt U.S. exports, for instance, and higher gas prices could act as a drag.

A softer tone for the dollar was set Wednesday after the Federal Reserve kept interest rates on hold and Fed Chairman Ben Bernanke said he remained willing to buy more bonds should the economy need help.

The number of Americans who applied for jobless benefits remained elevated for the third straight week, suggesting some weakening in the U.S. labor market.

Jobless claims fell by 1,000 to a seasonally adjusted 388,000 in the week ended April 21, the U.S. Labor Department said Thursday. Claims from two weeks ago were revised up to 389,000 — the highest level since the first week of January

Originally posted here