Silver Monthly Fundamental Forecast August 2012

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

Outlook and Recommendation

Silver ended a rocky month trading at 27.895 in the middle of the range. Industrial metals were hard hit by falling eco data especially disappointment in China. With the hope of stimulus from the Fed and the ECB both industrial metals and precious metals are soared.

Highest: 28.430

Lowest: 26.430

Difference: 2.000

Average: 27.386

Change %: 1.64

With global economic activity slowing, industrial demand for Silver is suffering and that is one reason why Silver prices are under pressure. However, another important reason is that Gold seems to have lost some of its safe-haven appeal, so while Gold prices have struggled, Silver has suffered too. With bullion prices having been back down close to important support levels, buying interest has improved and as we feel there is potential for Gold to become a more important safe-haven going forward, we feel there is a good chance that interest in Silver will pick-up too.

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.

Central Bank Name: Fed Reserve

Date of next meeting or last meeting: Sep 12 (at its August meeting the FOMC held rates and policy)

Current Rate: 0-0.25 % (- 0.75)

Statement highlights of last meeting: To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

Economic events for the month of August affecting USD

Date

Time

Currency

Event 

Forecast

Previous

Aug 1

12:15

USD

ADP Non-Farm Employment Change

122K

176K

 

14:00

USD

ISM Manufacturing PMI

50.4

49.7

 

18:15

USD

FOMC Statement

  

Aug 2

12:30

USD

Unemployment Claims

375K

353K

Aug 3

12:30

USD

Non-Farm Employment Change

101K

80K

 

12:30

USD

Unemployment Rate

8.2%

8.2%

 

14:00

USD

ISM Non-Manufacturing PMI

52.2

52.1

 

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
About:FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

  View all of FX Empire Analyst - Barry Norman's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.