5 April 2016

COMMODITY ANALYSIS FOR TODAY 05 APRIL 2016

SILVER ROCKSSSSSSSSSS HIT FIRST TGT 35950
GOLD: Gold fell on Monday after strong U.S. economic data boosted investor risk sentiment and a top U.S. Federal Reserve official said an interest rate hike is likely to take place ahead of the market's current expectations due to fading economic concerns. Spot prices saw their biggest quarterly rise in nearly 30 years in the three months to March, rallying on speculation the Fed was not in a hurry to normalize interest rates, but drifted back towards the key $1,200 level after hawkish comments from several Fed officials. The U.S. central bank raised rates in December for the first time in nearly a decade. On Monday, Boston Fed President Eric Rosengren, who is usually cautious, said it was "surprising" that U.S. interest rate futures markets currently imply one or zero rate hikes this year. He said this prediction could prove "too pessimistic."
Outlook: We expect gold prices to trade sideways on the back of uncertainty over US interest rates.
SILVER: Silver fell 0.5 percent to $14.95. New orders for U.S. factory goods fell in February and business spending on capital goods was much weaker than initially thought, the latest indications that economic growth slowed further in the first quarter. The Commerce Department said on Monday new orders for manufactured goods declined 1.7 percent as demand fell broadly, reversing January's downwardly revised 1.2 percent increase. Orders have declined in 14 of the last 19 months. They were previously reported to have increased 1.6 percent in January.
Outlook : We expect silver prices to trade sideways on the back of uncertainty over US interest rates.

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