Silver prices put in another strong performance on Friday to cap a bullish week for the precious metal.
Prices moved as high as $25.46 an ounce during the day, before pulling back to around $25.20 an ounce later in the day. That compared with $24.84 an ounce in late deals on Thursday.
Friday’s gains capped a strong week for silver overall, and the price of nearly $25.50 compares with $24.34 in the week ending March 8 and as low as $22.58 on March 1.
Silver’s recent strength has mostly come from gold, which stole the limelight in the first half of March with prices culminating in all-time highs of around $2,195 an ounce. Both metals have benefited from a weakening of the US dollar against other major currencies over the same period.
Looking at the one-year price chart, silver has spiked several times at a similar trajectory to the most recent gains, only to fall back on profit-taking. Any downside movements, though, have attracted solid support at around the $22.00 an ounce mark since November last year, suggesting plenty of willing buyers at those levels.
The markets continue to watch out for signals on interest rates, with any cuts likely to support non-interest-bearing assets like gold and silver.
Looking ahead, Monday will see the release of Euro Area inflation numbers for February, while Tuesday will see Canadian inflation figures for the same month.
Further out, all eyes will be on Wednesday’s interest rate decision by the US Fed. Few expect anything other than a continuation of the existing 5.5% rate at this juncture, but the markets will be watching out for any signals from the central bank on a potential June rate cut, which would be expected to support precious metals prices going forward.
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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