The commodity silver is surging today, making new 52 highs. Not only is silver a store of value during inflationary times, but more importantly, it is used in many products and the production of products. Therefore, it makes sense that it is running higher ahead of gold due to the solid economic outlook. The iShares Silver Trust (ETF) (NYSE:SLV) is jumping, hitting a new 52 week high at $32.08.
The price of gold of XAU/USD in the commodities market could be due for a correction in the near term. As you can see from its 4-hour chart above, gold has rallied nicely after hitting a low of $1,308.200 per ounce on January 28, 2011 after reaching a high of $1,423.69 on the first trading day of the new year. Gold was able to rebound from the said low and is now trading at $1,356.11.
This morning the iShares Silver Trust(NYSE:SLV) is trading higher by 0.21 cents to $28.51 a share. The SLV has bounced sharply higher over the past five trading sessions. Intra-day the SLV will have some minor resistance around the $28.65 area. The next important intra-day resistance area for SLV will be around the $28.80 level.
Hello commodity peeps! Here’s an update on my analysis on silver. From my last post (kindly check here), silver broke down from its 5-month uptrend. The price of gold along with other precious metals dropped as well. One reason is profit taking. In my opinion, another reason is… With the current fiscal situation in the US results to a weaker US dollar.
Last night the Shanghai Index declined by nearly 3.00 percent again. Since November 8th, 2010 the important Shanghai Index has declined lower by nearly 15.0 percent. The decline comes as the Chinese economy reported a stronger than expected gross domestic product(GDP) of 9.8 percent. The Chinese consumer prices Index(CPI) was reported at 4.6 percent.
The Canadian Dollar declined for the first time in ten days after crude oil came under pressure and dropped below $90 per barrel. Earlier in the trading session, the currency fell against the U.S. Dollar on speculation economic growth would drive demand for the nation’s resources, which account for about half its export revenue.
The price of gold have been relatively volatile during the past couple of weeks due to the swings in market sentiment. On November 9, gold marked a new all-time high at $1,424.00 per ounce before falling steeply amid the speculation that China will raise its interest rates to place a check on its 4.4% inflation figure for the month of October.
Commodity, Equity Bulls Pare Positions ahead of Friday’s Non-Farm Payrolls Report
Commodity and equity traders pared long positions on Thursday ahead of Friday’s U.S. Non-Farm Payrolls Report. Traders appeared to be taking no chances that the report will come out better than expected, leading perhaps to the Fed cutting back on the amount of quantitative easing it is currently considering.