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 (e.g. 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 closed the week and the month on a strong note, trading at 27.468, following cues from gold, but Silver was able to benefit from the move to risk assets and from the hope that the new EU bank plan will help stimulate growth and the demand for industrial metals. After spending most of the week in negative territory, silver popped on Friday as did all the commodities and equities.
|
Date |
Open |
High |
Low |
Change % |
|
|
Jun 29, 2012 |
27.468 |
26.310 |
27.905 |
26.288 |
4.38% |
|
Jun 28, 2012 |
26.315 |
26.928 |
27.127 |
26.112 |
-2.28% |
|
Jun 27, 2012 |
26.930 |
27.065 |
27.337 |
26.668 |
-0.52% |
|
Jun 26, 2012 |
27.070 |
27.510 |
27.553 |
26.805 |
-1.58% |
|
Jun 25, 2012 |
27.505 |
26.700 |
27.653 |
26.642 |
3.03% |
Silver opened strong at 27.40. The metal reached an early session high of 27.92 before light profit taking took silver to an intraday low of 27.21. Strong gains in base metals however, coupled with a meteoric rise in crude, brought the buyers back, resulting in the metal recovering to close the week at 27.66.
Silver closed much higher on the day forming a bullish engulfing pattern in the daily chart, but closed only slightly higher on the week. Still, the weekly close managed to hold above the long term uptrend off the 2008 low. The Gold/Silver ratio is trading slightly lower at 58.19.
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 June 25 – 29 actual v. forecast for the US Dollar
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun 25 |
USD |
New Home Sales |
369K |
347K |
343K |
|
Jun 26 |
USD |
S&P/CS Composite-20 HPI y/y |
-1.9% |
-2.4% |
-2.6% |
|
USD |
CB Consumer Confidence |
62.0 |
63.8 |
64.4 |
|
|
Jun 27 |
USD |
Core Durable Goods Orders m/m |
0.4% |
0.9% |
-0.6% |
|
USD |
Durable Goods Orders m/m |
1.1% |
0.5% |
-0.2% |
|
|
USD |
Pending Home Sales m/m |
5.9% |
1.2% |
-5.5% |
|
|
USD |
Crude Oil Inventories |
-0.1M |
-0.5M |
2.9M |
|
|
Jun 28 |
USD |
Unemployment Claims |
386K |
385K |
392K |
|
USD |
Final GDP q/q |
1.9% |
1.9% |
1.9% |
|
|
Jun 29 |
USD |
Core PCE Price Index m/m |
0.1% |
0.2% |
0.1% |
|
USD |
Personal Spending m/m |
0.0% |
0.1% |
0.1% |
|
|
USD |
Chicago PMI |
52.9 |
52.8 |
52.7 |
|
|
USD |
Revised UoM Consumer Sentiment |
73.2 |
74.2 |
74.1 |
Historical:
Highest: 49.813 on Apr 25, 2011
Average: 27.592over 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 2 |
3:15am |
CHF |
Retail Sales y/y |
0.9% |
0.1% |
|
3:30am |
CHF |
SVME PMI |
44.6 |
45.4 |
|
|
3:45am |
EUR |
Italian Manufacturing PMI |
44.6 |
44.8 |
|
|
4:30am |
GBP |
Manufacturing PMI |
46.7 |
45.9 |
|
|
5:00am |
EUR |
Unemployment Rate |
11.1% |
11.0% |
|
|
10:00am |
USD |
ISM Manufacturing PMI |
52.1 |
53.5 |
|
|
Jul 3 |
3rd-6th |
GBP |
Halifax HPI m/m |
-0.3% |
0.5% |
|
4:30am |
GBP |
Construction PMI |
53.1 |
54.4 |
|
|
4:30am |
GBP |
Net Lending to Individuals m/m |
1.1B |
1.4B |
|
|
10:00am |
USD |
Factory Orders m/m |
0.1% |
-0.6% |
|
|
Jul 4 Jul 5 |
4:00am |
EUR |
Final Services PMI |
46.8 |
46.8 |
|
4:30am |
GBP |
Services PMI |
53.0 |
53.3 |
|
|
5:00am |
EUR |
Retail Sales m/m |
0.2% |
-1.0% |
|
|
6:00am |
EUR |
German Factory Orders m/m |
0.2% |
-1.9% |
|
|
7:00am |
GBP |
Official Bank Rate |
0.50% |
0.50% |
|
|
7:45am |
EUR |
Minimum Bid Rate |
0.75% |
1.00% |
|
|
8:15am |
USD |
ADP Non-Farm Employment Change |
101K |
133K |
|
|
8:30am |
USD |
Unemployment Claims |
385K |
386K |
|
|
10:00am |
USD |
ISM Non-Manufacturing PMI |
53.1 |
53.7 |
|
|
11:00am |
USD |
Crude Oil Inventories |
-0.1M |
||
|
Jul 6 |
3:00am |
CHF |
Foreign Currency Reserves |
303.8B |
|
|
3:15am |
CHF |
CPI m/m |
-0.3% |
0.0% |
|
|
4:30am |
GBP |
PPI Input m/m |
-2.1% |
-2.5% |
|
|
6:00am |
EUR |
German Industrial Production m/m |
0.3% |
-2.2% |
|
|
8:30am |
USD |
Non-Farm Employment Change |
92K |
69K |
|
|
8:30am |
USD |
Unemployment Rate |
8.2% |
8.2% |
Click here to read Silver Technical Analysis.
Originally posted here
