Silver prices pushed up to their highest since February 19 on Friday, taking a lead from gold prices, which hit a two-month high.
Silver prices notched up a high of $23.28 an ounce, compared with around $22.68 an ounce in late deals Thursday.
The white metal got a boost from its companion precious metal, gold, which rallied as high as $2,088 an ounce on Friday – the highest price since late December 2023.
Both metals took support Friday from US data which showed a dip in both manufacturing activity and consumer sentiment in February, raising pressure on the central bank to take a more accommodative stance on monetary policy. Any cut in interest rates would be expected to boost the appeal of non-yield-bearing assets like precious metals.
The latest figures put downward pressure on US bond yields, contributing to the supportive environment for gold and silver prices.
The prospect of interest rates coming down, potentially as soon as June, has combined with an ongoing risk premium for safe-haven assets amid simmering tensions in both Russia and Ukraine and Israel and Gaza, creating a bullish backdrop for silver.
And the silver market’s fundamentals also point to a third year of structural supply deficit in 2024, according to industry group, The Silver Institute.
Looking ahead, the markets will be watching out for Tuesday’s US ISM Services PMI figures for February and factory orders for January, for the latest snapshot on the US economy.
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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