Silver performance was rather weak during the last week. The white metal kept its price volatility in the lower range. A number of economic data reports came out during last week and affected the commodity. US retail sales rose by 1.1% in February. Also jobless claims reached 332 000 by falling once again by 10 000. These mixed factors about the US economy may have contributed to the mixed trend in the precious metals prices during the last trading session.
On the Comex division of the New York Mercantile Exchange silver for May delivery was almost unchanged trading at a price of $28.85 per troy ounce earlier on Monday.
Past Saturday, the European Union and the International Monetary Fund reached a bailout agreement. These developments regarding the Cyprus rescue plan are currently pulling down the euro. Therefore, this news might trigger raise in demand for safe haven investments. In respect, silver prices could find more bullish support from the debt situation.
Over the last week only, the white metal lost 0.7% falling from $29.00 to $28.79 per ounce. So far in 2013, silver is 5.1% lower than the previous year. The metal is 41.8% down from its high recorded almost two years ago.
From technical point of view, the white metal is currently in a downward trend. At present, silver is 6.5% below its 200-period moving average. In addition, volatility is low compared to the average level over the last 10 period measurements.
Analysts think that the European sovereign debt crisis is far from over. This concerns cause stronger safe haven demand for precious metals and hence a prices jump. While gold recorded vivid gains at the start of the week, silver traded flat.
The upcoming Federal Reserve Open Market Committee meeting on Wednesday will be the main event of the coming week. Investors are waiting for any sign that Feds will change its US economy outlook or hint of any future shift to its current monetary policy program. Surprises could affect not only the US dollar, but also silver’s safe haven performance.
The Federal Reserve kept its policy unchanged after the last meeting back in January. This brought a sharp rise in white metal’s prices. Thought, on the next day bullion rates fell back.
Yet, if silver trading volumes record a modest pick up during this session, the price volatility could rise during the upcoming week.
