Silver Price Analysis: Support at 14.59/14.50, resistance at 14.90/15.16
London (July 23) The sell-off on commodity prices has started to impact across equity markets. With base and precious metals falling sharply in recent days, the oil price also joined in yesterday with WTI falling back below $50. Add in the disappointment of earnings releases from US corporate giants Apple and Microsoft and these moves are beginning to become cause for concern. Wall Street closed slightly lower again with the S&P 500 off by 0.2%, however the Asian market have formed some support and the Nikkei was up around 0.4%. Yesterday we saw the Greek Parliament comfortably pass a vote which agrees to the bailout which means that discussions over a third bailout for the heavily indebted country can now begin. European markets are mixed in early trading today.
The big news in forex markets overnight was that the Reserve Bank of New Zealand has put through a rate cut of 25 basis points which was in line with the market expectation. However the Kiwi has jumped over 1% on the news with the RBNZ not quite as dovish as in previous meetings, scaling back its rhetoric from “significant downside adjustment” to “further depreciation is necessary” whilst also not committing to a further rate cut in September. Aside from the Kiwi, forex majors are showing little real movement from the Asian session. Gold continues to look for a stable level and has bounced back by $5 in early moves.
Traders will be looking out for the UK retail sales at 0930BST which are expected to show +0.3% for the month and the year on year growth at +4.9%. Weekly jobless claims for the US are at 1330BST and are expected to stay broadly flat on the week at 280,000.