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.
Some Facts about Silver
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 is closing the week higher at current 27.28. This week was the 5th weekly session in the past 2 years to bounce off the $26 handle. Silver just seems to find good buying interest whenever we test these lower levels. We see 26.10 as the last line of support before liquidation selling emerges. The metal has been weak for the past 5 months having fallen from 37.46 since February. We would expect stop loss buying of Silver on a move above last week’s high of 28.44. The Gold Silver ratio at current 58.11 continues to trade within a 5 month bullish channel. Parameters lie at 56.92 and 59.92.
|
Date |
Last |
Open |
High |
Low |
Change % |
|
Jul 13, 2012 |
27.283 |
27.115 |
27.545 |
27.063 |
0.66% |
|
Jul 12, 2012 |
27.105 |
27.103 |
27.343 |
26.430 |
0.00% |
|
Jul 11, 2012 |
27.105 |
26.925 |
27.237 |
26.798 |
0.68% |
|
Jul 10, 2012 |
26.923 |
27.303 |
27.553 |
26.720 |
-1.40% |
|
Jul 09, 2012 |
27.305 |
26.962 |
27.480 |
26.925 |
1.26% |
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic Events for the week of July 9 – 13 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul 9 |
EUR |
Sentix Investor Confidence |
-29.6 |
-26.3 |
-28.9 |
|
GBP |
BRC Retail Sales Monitor y/y |
1.4% |
1.3% |
||
|
GBP |
RICS House Price Balance |
-22% |
-15% |
-17% |
|
|
Jul 10 |
EUR |
French Industrial Production m/m |
-1.9% |
-0.9% |
1.4% |
|
EUR |
Italian Industrial Production m/m |
0.8% |
-0.3% |
-2.0% |
|
|
GBP |
Manufacturing Production m/m |
1.2% |
0.1% |
-0.8% |
|
|
GBP |
Trade Balance |
-8.4B |
-9.0B |
-9.7B |
|
|
GBP |
NIESR GDP Estimate |
-0.2% |
0.1% |
||
|
Jul 11 |
USD |
Trade Balance |
-48.7B |
-48.5B |
-50.6B |
|
USD |
Crude Oil Inventories |
-4.7M |
-1.3M |
-4.3M |
|
|
Jul 12 |
EUR |
Industrial Production m/m |
0.6% |
0.0% |
-1.1% |
|
USD |
Unemployment Claims |
350K |
376K |
376K |
|
|
USD |
Import Prices m/m |
-2.7% |
-1.5% |
-1.2% |
|
|
USD |
Federal Budget Balance |
-59.7B |
-91.7B |
-124.6B |
|
|
Jul 13 |
CHF |
PPI m/m |
-0.3% |
-0.2% |
-0.2% |
|
USD |
PPI m/m |
0.1% |
-0.5% |
-1.0% |
|
|
USD |
Prelim UoM Consumer Sentiment |
72.0 |
73.5 |
73.2 |
Historical:
Highest: 49.813 on Apr 25, 2011
Average: 27.592 over this period.
Lowest: 14.655 on Feb 05, 2010
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jul 16 |
7:15 |
CHF |
Industrial Production q/q |
-7.5% |
8.8% |
|
9:00 |
EUR |
CPI y/y |
2.4% |
||
|
12:30 |
USD |
Retail Sales m/m |
-0.2% |
||
|
12:30 |
USD |
Empire State Manufacturing Index |
2.3 |
||
|
14:00 |
USD |
Business Inventories m/m |
0.4% |
||
|
Jul 17 |
8:30 |
GBP |
CPI y/y |
2.8% |
|
|
9:00 |
EUR |
German ZEW Economic Sentiment |
-16.9 |
||
|
9:15 |
ALL |
G7 Meetings |
|||
|
12:30 |
USD |
CPI m/m |
-0.3% |
||
|
13:00 |
USD |
TIC Long-Term Purchases |
25.6B |
||
|
13:15 |
USD |
Industrial Production m/m |
-0.1% |
||
|
Jul 18 |
8:30 |
GBP |
Claimant Count Change |
8.1K |
|
|
8:30 |
GBP |
Unemployment Rate |
8.2% |
||
|
9:00 |
CHF |
ZEW Economic Expectations |
-43.4 |
||
|
12:30 |
USD |
Building Permits |
0.78M |
||
|
12:30 |
USD |
Housing Starts |
0.71M |
||
|
14:30 |
USD |
Crude Oil Inventories |
-4.7M |
||
|
Jul 19 |
6:00 |
CHF |
Trade Balance |
2.48B |
|
|
8:00 |
EUR |
Current Account |
4.6B |
||
|
8:30 |
GBP |
Retail Sales m/m |
1.4% |
||
|
12:30 |
USD |
Unemployment Claims |
|||
|
14:00 |
USD |
Existing Home Sales |
4.55M |
||
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-16.6 |
||
|
Jul 20 |
6:00 |
EUR |
German PPI m/m |
-0.3% |
|
|
8:30 |
GBP |
Public Sector Net Borrowing |
15.6B |
Click here for further Silver Forecast.
Originally posted here
