Metals Pack Weekly Fundamental Analysis October 14-18, 2013 Forecast – Silver & Copper

SAN FRANCISCO (Oct 13)  Silver closed the week at 21.252 tumbling over 6% since Wednesday taking cues from gold as precious metal demand tumbled. Precious metals were locked up this week over the continued political wrangling in Washington over the U.S. government shutdown and the debt ceiling, and this will persist into next week, market watchers said. Thursday is the date when the Treasury has said it will run out of borrowing authority, which could mean it may default on some payments. Sentiment toward gold and silver was negative this week, with some banks like Goldman Sachs and Morgan Stanley giving bearish views on gold’s outlook. Some bullish market participants were surprised gold did not rally on the lack of agreement in Washington.

Copper for December delivery inched up 0.6 percent to end at $3.27. There has been a seen marginal turnaround in a few asset classes, with the news that US lawmakers continued talks on raising the nation’s debt limit to avoid a default. Base metals have shown a smart pullback overnight at the LME and, the COMEX is currently trading mixed. Copper rose in London, rebounding from a three-week low, on speculation U.S. politicians will agree to increase the government’s borrowing limit and avoid a debt default.

U.S. lawmakers for the first time yesterday embraced one possible path out of the fiscal impasse, a short-term deal to avoid default, even as they remained far apart on how to make it happen. Borrowing authority will expire in a week without an accord.   LME copper is down 2.5 percent this month amid signs of expanding production. World supply from mines will increase no less than 4 percent annually in the 2012-16 period; Standard Bank said this week in a report, compared with less than 1 percent in four of the six years before 2012.

Copper prices continued to trade lower at the non-ferrous metal market here today on consistent stockists selling amidst subdued demand from industrials users.  Tin prices rose due to good demand from alloy industries.   

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.