These Factors Have Been Driving Silver Prices Recently
Mining funds such as the leveraged Direxion Daily Gold Miners (NUGT) and the Direxion Daily Junior Bull Gold 3X (JNUG) rose substantially at the beginning of 2017.
The past few weeks have been choppy for metals due to concerns surrounding the Fed’s interest rate hike.
Mining funds such as the iShares MSCI Global Gold Min (RING) and the leveraged ProShares Ultra Gold (AGQ) have also seen significant correlations with their respective precious metals.
The economic performance of the overall world market has a considerable impact on precious metals, especially gold and silver.
Precious metals are known to perform better in a volatile atmosphere.
When analyzing the precious metals market, it’s important to take a look at the relationship between gold and silver.
Silver has performed slightly better than gold and platinum on a year-to-date basis.
There are several important economic indicators to watch for on the horizon. Let’s talk about a few.
Germany’s ZEW economic sentiment index (EWG) was at 12.8 March 2017. In comparison, it stood at 10.4 in February.
According to a report from the Center for European Economic Research, the Eurozone ZEW economic sentiment index rose in March 2017.
According to a report from the University of Michigan, the US consumer sentiment index improved in March 2017. It stood at 97.6 in March 2017, compared to 96.3 in February 2017.
On a year-over-year basis, China’s retail sales were weaker in February 2017, according to the National Bureau of Statistics of China. The data were released on March 13, 2017.
According to the National Bureau of Statistics of China, on a year-over-year (or YoY) basis, the country’s industrial production rose 6.3% in February 2017.
According to the data provided by the United States Census Bureau on March 15, 2017, US retail sales rose 0.1% in February 2017, below the market’s expectation of a 0.3% rise.
According to the data provided by the U.S. Bureau of Labor Statistics, the US inflation index stood at 0.1% in February 2017, compared to 0.6% in January 2017.
The US February jobs report indicated improvement in the labor market. Non-farm payroll employment in the United States (SPY) (SPXL) saw a rise of 235,000 jobs in February 2017.
The ADP National Employment Report for February 2017 was recently released, and it showed improvement in the labor market.
Eurozone (FEZ) (VGK) investor confidence improved strongly in March 2017. The Sentix investor confidence index stood at 20.7 in the month.
According to a report provided by Markit Economics, the Japan manufacturing PMI (purchasing managers’ index), released on March 2, 2017, stood at 51.3 in February 2017.
According to Markit Economics, the India services PMI (purchasing managers’ index), released on March 2, 2017, stood at 50.3 in February 2017.