Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Positive Economic Data Likely to Support Silver Prices

By Abhishek BansalCommoditiesMay 03, 2021 06:12AM ET
www.investing.com/analysis/positive-economic-data-likely-to-support-silver-prices-200577064
Positive Economic Data Likely to Support Silver Prices
By Abhishek Bansal   |  May 03, 2021 06:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Silver was trading near $26.183, slightly higher from Friday’s closing on the backdrop of positive economic data which is supportive for industrial metal demand.

US Treasury Secretary Janet Yellen on Sunday stated that President Joe Biden’s plans for infrastructure, jobs, and families, will not cause immediate inflation. She said that the spending will be phased in over a decade.

Dallas Federal Reserve Bank President Robert Kaplan on Friday called for beginning the conversation about reducing central bank support for the economy, warning of imbalances in financial markets, and arguing the economy is healing faster than expected. This is likely to keep precious metals under pressure.

Meanwhile, China’s gold consumption soared 93.9% in the first three months from the same quarter a year earlier according to the China Gold Association.

On the economic data front, US Mar personal spending rose +4.2% m/m, against expectations of +4.1% m/m and the biggest increase in 9 months. Also, Mar personal income rose a record +21.1% m/m (data from 1946), against expectations of +20.3% m/m.

In addition, the Apr MNI Chicago PMI unexpectedly rose +5.8 to 72.1, against expectations of a decline to 65.0. The final-April University of Michigan U.S. consumer sentiment index rose +1.8 to a 13-month high of 88.3, stronger than expectations of 87.5.

Other global economic data were also supportive for industrial metals demand and silver prices. Eurozone Q1 GDP fell -0.6 q/q and -1.8% y/y, against expectations of -0.8% q/q and -2.0% y/y.

Also, the Eurozone Mar unemployment rate fell -0.1 to a 9-month low of 8.1%, showing a stronger labor market than expectations of 8.3%.

In addition, Japan Mar industrial production unexpectedly rose +2.2% m/m, against expectations of -2.0% m/m. Finally, the Japan Mar jobless rate unexpectedly fell -0.3 to an 11-month low of 2.6%, showing a stronger labor market than expectations of 2.9%.

Additionally, Eurozone factory activity growth reached a record high in April which is boosted by surging demand, driving a swell in hiring although supply-side constraints led to an unprecedented rise in unfulfilled orders. IHS Markit’s final Manufacturing Purchasing Managers’ Index (PMI) rose to 62.9 in April from March’s 62.5. Silver prices found support on the back of positive PMI data in the eurozone.

However, recovery in the US dollar index and the United States 10-year Bond Yield is likely to cap the gains. The dollar index bounced from a low of 90.398 registered on Apr. 29 and holding near 91.188 after registering a high of 91.385 in the early hours today. The US 10-Year Bond Yield is currently trading near 1.626, which is sharply higher from a recent low of 1.531 registered on Apr. 23.
 
According to the CFTC Commitments of Traders report for the week ended Apr. 27, net long for silver futures increased by 1160 contracts to 42841 for the week. The speculative long position gained by 1213 contracts, albeit shorts also gained by 53 contracts.
 
Silver prices are rallying on increasing economic optimism from positive economic data across the globe. It is likely to trade firm while above 50 days EMA of $25.86, and 200 days EMA of $24.885.

Positive Economic Data Likely to Support Silver Prices
 

Related Articles

Tim Knight
Miners Break Out By Tim Knight - May 14, 2021 1

The precious metals miners ETF, VanEck Vectors Gold Miners ETF (NYSE:GDX), has a clear breakout from its downtrend: Gold has been struggling since Aug. 6, but if it can manage to...

Jordan Roy-Byrne, CMT
Gold Is Still Dirt Cheap By Jordan Roy-Byrne, CMT - May 14, 2021 2

On a historical basis, gold remains incredibly cheap. It may seem expensive on the surface, trading near $2,000/oz, but the reality is contrary to the perception. Gold is trading...

Positive Economic Data Likely to Support Silver Prices

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
Continue with Google
or
Sign up with Email