Silver Fundamental Analysis August 9, 2013 Forecast
NEW YORK (Aug 8) Silver added over 41 cents to trade at 19.923 and looks like it might break above the $20 level, after taking cues from rise in gold prices along with upside in base metals group, silver prices rose by around 0.9 percent today. Further, weakness in the DX acted as a positive factor for prices. The base metals complex traded on a higher note today on the back of upbeat global markets as a result of rise in Chinese exports beating the estimates. Additionally, weakness in the DX supported an upside in prices. The US dollar continues to ease, but demand for precious metals remains weak. At the moment, silver prices continued to trade within a downtrend channel but the recent retest of low shows that buyers are determined and looking for higher prices. The support at $ 19.20 held twice now and should it break above the upper downtrend channel and managed to hold on to its gain, we could see resumption higher.
As Fed speak keeps the markets uncertain, the greenback along with precious metals will remain weak. A better print of Chinese trade data helped support metals today. The Fed’s recent monetary stimulus measures, known as quantitative easing, were a key factor in driving gold prices to record highs in 2011, as they kept long-term interest rates at rock bottom while stoking fears over inflation. Speculation that the Fed may be set to taper QE has helped push gold prices down by nearly a quarter this year.
The president of the Cleveland Fed, Sandra Pianalto, seen as a centrist on policy, said on Wednesday the U.S. central bank could soon curb the pace of its bond-buying stimulus if recent improvement in the job market persists.