Silver prices staged a three-day long rally to reach a six-week high on Friday, rising along with strength in the gold price seen in the second half of the week.
Prices reached a high of $23.54 an ounce in late deals Friday, compared with around $23.00 an ounce late Thursday and from a low of just below $22.00 on Wednesday.
The strong rebound for silver came as gold prices showed a partial recovery from a sharp drop seen on Tuesday.
The US dollar weakened against other major currencies towards the end of the week, providing a supportive element for dollar-denominated assets like gold and silver.
This effect of currencies appeared to trump other factors on Friday, which were marginally bearish for precious metals. US producer prices for January showed a larger increase than market expectations, according to figures released Friday, lending weight to suggestions that the US Fed might need to keep interest rates higher for longer.
Looking ahead, Canadian inflation figures are due out on Tuesday, followed by UK industrial trends orders for February. The UK’s industrial demand for silver has moved in a range of 20-25 million ounces per year in recent years, according to The Silver Institute. However, UK economic growth has been tepid in recent months, with GDP for 2024 projected to be 0.6% according to the International Monetary Fund.
Looking further out, the markets will be watching out for the US Fed FOMC minutes on Wednesday for further signals on monetary policy.
Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.
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