Silver Price News: Silver Closes In On $35.00 an Ounce

Silver prices pushed higher again on Tuesday, coming within striking distance of the $35.00 an ounce mark as bullish mood in the precious metals markets continued.

Prices climbed to an intraday high of $34.93 an ounce on Tuesday – the highest price for silver since October 2012 – and easily surpassing Monday’s high of $34.30 an ounce.

‘Perfect storm’

Something of a ‘perfect storm’ has emerged in recent weeks for precious metals as lower borrowing costs combined with safe-haven flows amid uncertainties over conflict in the Middle East and the upcoming US election on November 5.

It has been hard for silver to ignore gold’s upward march to fresh all-time highs, as the gold/silver ratio, currently standing at around 80, means silver tends to benefit as a natural consequence of gold’s push into new territory on the upside.

Kazan summit piques interest

A three-day international summit in the Russian city of Kazan which started on Tuesday has prompted some discussion amid speculation that the BRICS nations want to launch a new currency that may be partially backed by gold. Any such move would be expected to face significant challenges, and it remains to be seen if the BRICS countries announce any concrete steps on a new currency at the gathering in Russia.

China moves to bolster growth

Recent stimulus measures in China have also lent a bullish tone for silver as China is a major buyer of silver for industrial applications, which make up about half of total demand for the metal. Recent efforts include reducing borrowing costs and measures to support China’s stock market.

Economic data to watch out for

Looking ahead, the markets will be watching out for Wednesday’s interest rate decision by the Bank of Canada, with traders expecting a 50-basis point cut to 3.75%. The BoC’s decision comes in the context of recent interest rate cuts by the US, EU, UK and New Zealand, as inflation slows and economic growth weakens. Other data points on Wednesday include Euro Area consumer confidence figures for October, monthly manufacturing figures from Australia and Q3 GDP growth rates for South Korea.