Metals Pack Fundamental Analysis November 1, 2013 Forecast – Silver & Copper

New York (Oct 31)  Analysis and Recommendations:

Silver tumbled along with gold today to trade at 22.16 down by 82 cents as markets eased from the safety of precious metals after the FOMC decision to keep things as they are. Copper edged down by 29 pips to trade at 3.297 very close to its average price at 3.30. Copper fell in London, heading for the first monthly drop since June, on speculation the Federal Reserve will start to slow economic stimulus sooner than forecast in the U.S., the second-biggest user of the metal. Copper stockpiles monitored by the LME rose for the first time since Sept. 4 to 476,150 tons, bourse data showed today. Theyre still up 49 percent this year. Metal amounting to 3,375 tons was delivered in New Orleans, the biggest global repository for the metal. Orders to remove copper from warehouses dropped 1.1 percent to 291,500 tons.

The economy shows signs of underlying strength, the Fed said yesterday after a policy meeting ended, even as it maintained $85 billion in monthly bond purchases. The statement opens the possibility of reduced debt-buying as soon as December, Citigroup Inc. and Barclays said yesterday.

Silver prices, along with related exchange traded funds, are outshining gold as uncertainty fuels safe-haven investments, but industrial activity could help silver keep up its momentum.

The ishares Silver Trust rose 2.9% Friday while the SPDR Gold Shares gained 1.1%. Since the early August low, SLV has increased 14.4%, whereas GLD is only up 3.2%. Precious metals are strengthening as a safe-store of value, with Congress deadlocked over extending the countrys debt limit to avoid a default.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports.