Thomson Reuters GFMS sees silver demand rising on a pick-up in manufacturing activity and investment. The metals research firm expects the silver price to benefit from accelerating global growth this year. However, the impact on the price will depend on the extent of the recovery in the Eurozone.
The silver price jumped 2% last week to US$24/oz as bargain hunting lifted silver coin demand. The recent price fall is expected to underpin investment demand, which could hit an all-time high this year according to the research firm.
Russian palladium exports reach the highest level since January 2010. With markets expecting nearly-depleted Russian stocks, the 9.39 tonnes of palladium imported into Switzerland from Russia in Q1 came as a surprise. If flows from Russia continue to be so strong, investors might lose appetite for the metal. Although too early to draw any firm conclusions it is something to watch.
Key events to watch this week. Investor attention will be sharply focused on the ECB meeting this week, with the consensus expecting a cut in rates. That would mark a bold shift in the ECB’s thinking as it has traditionally been reluctant to move rates below 0.75%. FOMC members’ reaction to the weak GDP and employment data will be closely observed and the payrolls data for April will give clarification as to how sustained the weakness in the US jobs market was.
ETFS Physical Swiss Gold Shares (NYSEArca: SGOL)
