Silver prices were broadly steady on Thursday after rallying on Tuesday and Wednesday close to a three-year high.
Prices moved in a roughly 50-cent range of $26.80 to $27.30 an ounce on Thursday, with the metal trading at around $27.20 an ounce later in the session, little changed from late deals on Wednesday.
Silver prices were rampant on Tuesday and Wednesday, powering up to $27.36 an ounce – the highest price since June 2021 – compared with just below $25.00 an ounce on Thursday last week, ahead of the long Easter weekend.
Looking at the one-year chart for silver, prices had previously struggled to move above resistance at around $25.20 an ounce, and the more recent surge past this level may focus minds on the potential for further upside.
Gold’s recent jump to all-time highs has certainly put wind in silver’s sails, with the precious metals complex moving higher in general as inflation continues to erode the value of fiat currencies, increasing interest in hard assets whose underlying supply is finite.
Moreover, stronger industrial data from China has leant a bullish element for silver, after recent manufacturing figures showed the first growth in factory activity in six months in March. Roughly 50% of global demand for silver comes from the industrial sectors, making the world’s second largest economy an important driver for the white metal.
Looking ahead, Friday will see the release of US Non-Farm Payrolls figures and the unemployment rate for March, providing the latest pulse-check on the US economy. A flurry of speeches by US Fed officials are also likely to be closely watched on Friday for signals on upcoming changes to interest rates – a major factor for precious metals prices.
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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