Weekly Analysis and Recommendations: Silver dropped 219 points finding a new 2014 low near 16.828 while Copper eased by 1 point to trade just under the $3
Silver dropped 219 points finding a new 2014 low near 16.828 while Copper eased by 1 point to trade just under the $3 level. An accelerating American economy means investors are shunning precious metals even after the U.S. expanded sanctions against Russia and ramped up its military campaign to combat Islamic State in Iraq. Rising interest rates reduce the metal’s allure because the metal generally only offers investors returns through price gains, while a stronger dollar typically cuts demand for a store of value.
“Strengthening payrolls are going to add to the perception that the Fed is going to raise rates sooner,” Charlie Biella, who helps oversee $220 million as director of research at Pension Partners LLC in New York. “The perception is that a more hawkish Fed is negative for gold.”
The 248,000 gain in payrolls followed a 180,000 August increase that was bigger than previously estimated, the Labor Department said today. The median forecast of economists in a Bloomberg survey called for a 215,000 advance. The unemployment rate fell to the lowest level since July 2008.
Traders said increased demand from consuming industries and a report of a firming global trend mainly supported the upside in nickel and copper prices.
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.
Historical: From 2011 to present
Highest: 44.188 on Aug 22, 2011
Average: 31.108 over this period
Lowest: 16.47 in September 2014
Events You Should Be Monitoring This Week:
CAD Ivey PMI
NZD NZIER Business Confidence
JPY Monetary Policy Statement
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JPY BOJ Press Conference
GBP Manufacturing Production m/m
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USD FOMC Meeting Minutes
AUD Employment Change
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GBP MPC Rate Statement
USD Unemployment Claims
EUR ECB President Draghi Speaks
CAD Employment Change
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