Silver prices pushed up to a three-month high at the end of last week, with prices topping the $24.30 an ounce mark on Friday for the first time since early September.
Prices spent most of Friday morning trading in a range of $23.60 to $23.75 an ounce in fairly subdued conditions. However, Friday afternoon saw a surge higher to over $24.30, rounding off the week in bullish fashion.
The US dollar weakened against other major currencies on Friday, adding to a drop in the dollar’s value seen throughout November, and providing a supportive element for dollar-denominated assets like gold and silver.
However, the scale of silver’s move higher may have been exacerbated by thin liquidity due to the US Thanksgiving holiday on Thursday and a half day of trading on Friday.
A further contributing factor may have been recent speculation that the US Fed is done with interest rate hikes, which if borne out, would potentially remove a barrier holding silver prices back.
Silver’s dual role as an investment asset and a semi-industrial metal makes its response to economic data complex. Data suggesting a weaker economic outlook may indicate lower industrial demand for silver, but paradoxically may lead to central banks taking a more dovish stance on interest rates – a positive driver for non-yield-bearing assets like silver and other precious metals.
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