Metals Pack Fundamental Analysis October 3, 2013 Forecast – Silver & Copper
NEW YORK (Oct 2) Silver climbed to trade at 21.238 gaining 63 points as traders took advantage of low prices to buy up the commodity, while copper eased by 7 points with China closed for a week long holiday. Yesterday silver price suffered the strong fall but less than gold but should recover faster than gold now.A standoff between President Barack Obama and Republican lawmakers forced the U.S. government to begin a partial shutdown on Tuesday. And now an even bigger battle looms as Congress must raise the debt limit in coming weeks or risk a default that could roil global markets. Investors have generally taken the view that the U.S. deadlock would prove temporary, but there are growing worries about its implications for talks on raising the U.S. public debt ceiling later this month.
There is a view in the market that the longer the U.S. shutdown continues, the more likely you’re going to get in that agreement to raise the debt level (because) politicians …may wish to agree on the debt rate quickly …and that is bearish for gold because you are not going to get the U.S. defaulting.Precious metals safe-haven appeal is usually burnished by uncertain economy and geopolitical tensions and prolonged U.S. budget talks had initially prompted hopes that gold prices could rise, but safe-haven bids struggled to emerge in the previous sessions.
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.