Silver Weekly Fundamental Analysis December 3 – 7, 2012, Forecast

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Updated: Aug 20, 2015, 23:00 UTC

Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific

Silver Weekly Fundamental Analysis December 3 - 7, 2012, Forecast

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 closed the week at 33.475 adding gains for the week after opening on Monday at 34.110. With positive eco data, industrial metals rocked this week helping to push up the prices of silver, while precious metals remained strong ahead of the US Fiscal Cliff.

Date	Last	Open	High	Low	Change %
Nov 30, 2012	33.475	34.285	34.423	33.225	-2.36%
Nov 29, 2012	34.283	33.838	34.485	33.613	1.29%
Nov 28, 2012	33.845	34.083	34.135	32.995	-0.69%
Nov 27, 2012	34.080	34.260	34.368	34.005	-0.52%
Nov 26, 2012	34.258	34.110	34.310	33.978	0.46%

Silver prices were trading 0.1 percent higher in Friday’s session. Strength in the gold prices along with weakness in the DX is supporting an upside in the spot silver prices. Silver prices are trading around $34.24 per ounce after touching a high of $34.34 Strength in the base metals pack also supportive for the silver 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.

Major Economic Events for the week of November 26 – 30 actual v. forecast for Euro, GPB, the Franc, and USD

Date	Currency	Event	Actual	Forecast	Previous
Nov. 26	CHF	Employment Level	4.12M	4.09M	4.07M
	EUR	GfK German Consumer Climate	5.9	6.2	6.1
Nov. 27	GBP	Business Investment (QoQ)	3.7%	1.3%	0.9%
	GBP	GDP (QoQ)	1.0%	1.0%	1.0%
	GBP	GDP (YoY)	-0.1%	0.0%	0.0%
	USD	Core Durable Goods Orders (MoM)	1.5%	-0.5%	1.7%
	USD	Durable Goods Orders (MoM)	0.0%	-0.6%	9.2%
	USD	CB Consumer Confidence	73.7	73.0	73.1
Nov. 28	EUR	German CPI (MoM)	-0.1%	-0.1%	0.0%
	EUR	German CPI (YoY)	1.9%	1.9%	2.0%
	USD	New Home Sales	368K	390K	369K
Nov. 29	CHF	GDP (QoQ)	0.6%	0.2%	-0.1%
	GBP	Nationwide HPI (MoM)	0.0%	0.1%	0.6%
	EUR	German Unemployment Change	5K	15K	19K
	EUR	Italian 10-Year BTP Auction	4.45%		4.92%
	GBP	CBI Distributive Trades Survey	33	18	30
	USD	Initial Jobless Claims	393K	390K	416K
	USD	GDP (QoQ)	2.7%	2.8%	2.0%
	USD	Continuing Jobless Claims	3287K	3323K	3357K
	USD	Pending Home Sales (MoM)	5.2%	0.8%	0.4%
Nov. 30	EUR	French Consumer Spending (MoM)	-0.2%	-0.1%	0.1%
	CHF	KOF Leading Indicators	1.50	1.60	1.64
	EUR	CPI (YoY)	2.2%	2.4%	2.5%
	USD	Core PCE Price Index (MoM)	0.1%	0.2%	0.1%
	USD	Personal Spending (MoM)	-0.2%	0.2%	0.8%

Historical: From 2010 to present

Highest: 49.813 on Apr 25, 2011

Average: 28.468 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
Dec. 03	08:15	CHF	Retail Sales (YoY)	4.1%	5.4%
	08:30	CHF	SVME PMI	47.0	46.1
	15:00	USD	ISM Manufacturing Index	51.3	51.7
Dec. 05	10:00	EUR	Retail Sales (MoM)	-0.1%	-0.2%
	13:15	USD	ADP Nonfarm Employment Change	125K	158K
	13:30	USD	Nonfarm Productivity (QoQ)	2.7%	1.9%
	13:30	USD	Unit Labor Costs (QoQ)	-0.9%	-0.1%
	15:00	USD	ISM Non-Manufacturing Index	53.5	54.2
Dec. 06	08:15	CHF	CPI (MoM)		0.1%
	09:30	GBP	Trade Balance	-8.8B	-8.4B
	10:00	EUR	GDP (QoQ)	-0.1%	-0.1%
	11:00	EUR	German Factory Orders (MoM)	0.9%	-3.3%
	12:00	GBP	Interest Rate Decision	0.50%	0.50%
	12:00	GBP	BOE QE Total	375B	375B
	12:45	EUR	Interest Rate Decision	0.75%	0.75%
Dec. 07	09:30	GBP	Industrial Production (MoM)	0.7%	-1.7%
	09:30	GBP	Manufacturing Production (MoM)	-0.2%	0.1%
	09:30	GBP	Industrial Production (YoY)	-0.6%	-2.6%
	11:00	EUR	German Industrial Production (MoM)	-0.5%	-1.8%