Silver Weekly Special Report based on 1.00 Lot Calculation:
GEOPOLITICS:
- HAMAS CEASEFIRE TALKS END WITH NO DEAL, ISRAEL TO PROCEED WITH THE RAFAH OPERATION. NEWS: A senior Israeli official said late on Thursday that the latest round of indirect negotiations in Cairo to halt hostilities in Gaza had ended with NO deal and Israel would proceed with its operation in Rafah and other parts of the Gaza Strip as planned. NEGOTIATIONS FAILED: Israel has submitted to mediators its reservations about a Hamas proposal for a hostage release deal. The talks in Egypt's capital made some headway but no deal was reached, according to two Egyptian security sources. Izzat El-Risheq, a member of Hamas' political office in Qatar, said the Hamas delegation had left Cairo. The Israeli military has the munitions it requires for operations in Rafah and other planned operations, chief armed forces spokesperson Rear Admiral Daniel Hagari said.
- AVERAGE MARKET REACTION TO ESCALATING TENSIONS:
Source: MT4 Platform
Please note that the past performance does not guarantee future performance
EVENTS:
- EVENT (US CONSUMER PRICE INDEX (CPI) APRIL - WEDNESDAY 15 MAY 13:30 GMT+1): The United States will report its CPI for April. March CPI came in at 3.5%, Year-over-Year, well below its peak of 9.1% peak in 2022. If inflation continues to trend lower, with levels approaching the Federal Reserve’s 2% target this could be positive for Silver.
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%. A silver price was fueled by increased safe-haven demand, as geopolitical tensions in the Middle East and Ukraine intensified. Strong manufacturing data from top consumer China and projections for growing solar installations improved the metal's industrial outlook.
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 of silver could go further down.
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 $28.50 and if full recovery is made this could offer an upside potential of around 84%. However, the price could decline further.
Silver, May 10, 2024
Current Price: 28.50
SILVER |
Weekly |
Trend direction |
|
50.00 |
|
40.00 |
|
29.60 |
|
27.40 |
|
27.00 |
|
26.70 |
Example of calculation based on trend direction for 1.00 Lot*
SILVER |
||||||
Pivot Points |
||||||
Profit or loss in $ |
215,000.00 |
115,000.00 |
11,000.00 |
-11,000.00 |
-15,000.00 |
-18,000.00 |
Profit or loss in €2 |
199,411.60 |
106,662.02 |
10,202.45 |
-10,202.45 |
-13,912.44 |
-16,694.92 |
Profit or loss in £2 |
171,549.85 |
91,759.22 |
8,776.97 |
-8,776.97 |
-11,968.59 |
-14,362.31 |
Profit or loss in C$2 |
294,145.80 |
157,333.80 |
15,049.32 |
-15,049.32 |
-20,521.80 |
-24,626.16 |
1. 1.00 lot is equivalent of 10.000 units
2. Calculations for exchange rate used as of 10:40 (GMT) 10/05/2024
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- 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