Silver’s Q3 performance tough to predict
The direction that silver prices will take during the third quarter of 2012 is difficult to predict, according to a recent opinion piece written by Rob Kurzatkowski, senior commodity analyst.
Silver prices did not have the strongest performance during the second quarter, as precious metals buyers responded to the deteriorating strength of economic projections. Global investors have divested from exchange traded funds holding the industrial metal, as silver is less of a safe haven than gold, according to OptionsXpress.
Gold suffered its worst quarter in four years during the second quarter of 2012. According to Fox Business, the metal declined 3.9 percent during the period. The U.S. dollar rose, and the appreciating currency and the dropping gold prices were both bearish for silver, OptionsXpress reports.
Since a substantial amount of silver's value is derived from the industrial demand of market participants, the reduced forecasts for economic growth in the United States, China and the European Union all had an effect on the price of the metal, according to the news source.
A technical analysis chart referenced by Kurzatkowski predicts that September silver will rise above $27.50, the media outlet reports. He stated that for the metal to obtain upside momentum, prices must push above $30.00.
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