Silver Price News: Silver Nears One-Month High, Eases Later

Silver prices climbed close to a one-month high on Friday, holding onto gold’s coattails, although prices fell back to close the day slightly in the red.

Silver peaked at just over $28.75 an ounce during the day Friday but prices fell back later to around $28.20 an ounce by late afternoon. That compared with around $28.37 an ounce in late trades on Thursday.

Silver’s initial gains took the white metal to its highest price since April 19 – close to a one-month high. The gains capped a bullish week for silver, which took a lead from gold prices, which powered up in the latter half of the week to reach a three-week high on Friday.

Thursday’s US jobless claims figures came in higher than expectations, raising the prospects of interest rate cuts in the coming months, boosting precious metals prices.

US 10-year treasury yields also fell sharply on Thursday, driving gold and silver prices higher, before rebounding on Friday in a move which curbed silver’s gains later in the day.

Key for silver will be whether the market has the impetus to launch another attempt at the $29.00 to $30.00 an ounce mark, or whether these levels continue to create resistance, triggering selling pressure.

Monday is looking light on data releases, and the markets will likely be looking ahead to Tuesday’s Euro Area ZEW economic sentiment figures for a status update on the European economy. Eyes will also be on the US producer prices index for April due for release Tuesday, for further clues about how inflation is shaping up.