Silver prices may average $17.8 oz in Q3 2013 on weak fundamentals
LONDON (July 7) Silver prices are expected to average $17.8 per troy ounce in the third quarter of this year as it is witnessing weak fundamentals characterised by poor industrial demand and investors' support, said London based Barclays in a report.
The commodity is expected to continue with its negative trend in the near term, the bank said.
Morgan Stanley recently reduced its 2013 silver price forecast by 14% to $23.39. The financial firm also revised down its 2014 price projection by 29% to $21.01 an ounce.
Australia's largest mint, Perth Mint announced yet another slowdown in silver sales in June. Silver sales dropped to 636,047 ounces in June from 674,480 in May.
Analysts said the drop in sales shows that lower prices have failed to woo buyers in Australia this time around just like elsewhere as consumers expect a further drop.
The total US nonfarm payroll employment increased by 195,000 in June, and the unemployment rate was unchanged at 7.6 percent, the U.S. Bureau of Labor Statistics reported on Friday. The data may have impacted the bullion commodities slightly.
Silver futures for September delivery on Globex platform of Comex settled down by 4.25% at $18.863 per troy ounce on Friday after release of US non-farm payrolls data.
However, persisting less than expected economic growth across the Europe, China and the United States may support the bullion commodities may limit fall in bullion commodities.