Metals Pack Monthly Fundamental Forecast January 2014 – Silver & Copper

Outlook and Recommendation

Silver ended the year at 19.438 taking its cues from gold as precious metals closed the year out of favor. Silver is expected to climb back over the $20 level after the New Year. Copper  prices closed the year near recent highs after being inflated by an “error” which sent prices climbing to 3.46 as prices climbed technical buys and sells were triggered leaving the prices near record highs. Traders are now closely looking at Chinese data for demand needs for industrial and base metals.   “Chinese worries are playing into recent commodity weakness,” said Jim Russell, senior equities strategist at U.S. Bank Wealth Management. “There is concern on the outlook for 2014; many think it will represent a step down in growth rate in China as compared to recent years.” He said strength in the U.S. dollar was also weighing on parts of the commodities complex

Next week traders will be closely eyeing the return of the US data stream with ISM non-manufacturing, factory orders, ADP employment, trade balance data and the release of the minutes from the latest FOMC policy meeting all on tap ahead of the much anticipated NFP report on Friday. Non-farm payrolls are expected to show the addition of 193K jobs last month, slightly softer than the blowout 203K print seen in November, with the headline employment rate seen holding steady at 7.0%. Look for strengthening US data to limit advances in precious metals.

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 – Fed Reserve

Date of next meeting: January 29, 2014

Current Rate: 0.00% – 0.25%

Economic events for the month of February affecting EUR, GBP and USD