Silver Weekly Special Report based on 1.00 Lot Calculation:
EVENT
- TUESDAY, JULY 2 AT 14:30 GMT+1: FEDERAL RESERVE CHAIR JEROME POWELL SPEAKS AT ECB CENTRAL BANKING FORUM: The European Central bank will be holding a central banking forum in Sintra, Portugal, where its widely expected that the central bank heads will be discussing monetary policy. Federal Reserve Chair Jerome Powell will be speaking, and could cover interest rate expectations. Should the expectations come off dovish, silver prices could move higher.
- FRIDAY, JULY 5 AT 13:30 GMT+1: US NFP & UNEMPLOYMENT. The United States will be reporting NFP and Unemployment data later this week. Should NFP come in lower than expected, silver prices could move higher due to potentially dovish sentiment on the back of that data.
- THURSDAY, JULY 11 AT 13:30 GMT+1: US CPI DATA FOR JUNE. The United States will be reporting CPI data. The US CPI has been trending lower, well below its 2022 peak of 9.1%. The most recent print showed CPI at 3.3%. Should the CPI come in lower than expected, silver prices could move higher on dovish expectations.
OTHER ANALYSIS:
- SILVER DEMAND: The United States remains the most important market with 22% of global demand for silver, while China represents 15% of global demand for silver (Source: Bloomberg). China's economy could potentially grow by about 5%. The US imposed 50% tariffs on Chinese imports of solar cells, among the biggest industries for silver in an industrial end, to pressure output in panels throughout key factories in Asia with corporate bases in China. Investors continued to assess the demand outlook in top silver consumer China after an official report pointed to the second straight month of manufacturing downturn in June. In contrast, a private survey pointed to the fastest pace of manufacturing sector growth in three years.
ANALYST EXPECTATIONS
- The Silver Institute forecasts global silver demand to hit 1.2 billion ounces in 2024, the second-highest level ever recorded. The Institute believes Gold could rise initially, followed by a rapid surge in silver prices. The report asserts that silver consistently outperforms, albeit belatedly. The Silver Institute believes that silver could potentially reach $50, but only after gold surpasses $2,200, which it already has. Therefore, a Silver wave could be possible relatively soon. Although the price could go down.
- UBS: The bank targets a price of $36.
PRICE ACTION
- ALL-TIME HIGH PRICE: $49.80. Silver jumped to $49.80 in 2011, during the debt crisis in Europe. Currently, Silver trades around $29.30 and if full recovery is made this could offer an upside potential of around 70%. However, the price could decline.
Silver, July 2, 2024
Current Price: 29.30
|
SILVER |
Weekly |
|
Trend direction |
|
|
50.00 |
|
|
40.00 |
|
|
31.00 |
|
|
28.00 |
|
|
27.80 |
|
|
27.50 |
Example of calculation based on trend direction for 1.00 Lot*
|
SILVER |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
207,000.00 |
107,000.00 |
17,000.00 |
-13,000.00 |
-15,000.00 |
-18,000.00 |
|
Profit or loss in €2 |
193,145.66 |
99,838.58 |
15,862.20 |
-12,129.92 |
-13,996.06 |
-16,795.27 |
|
Profit or loss in £2 |
163,960.40 |
84,752.48 |
13,465.35 |
-10,297.03 |
-11,881.19 |
-14,257.43 |
|
Profit or loss in C$2 |
284,371.43 |
146,993.93 |
23,354.18 |
-17,859.08 |
-20,606.63 |
-24,727.95 |
1. 1.00 lot is equivalent of 10.000 units
2. Calculations for exchange rate used as of 10:10 (GMT) 02/07/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one
Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more detail