Silver Price Rides Metals Rally
Source: Silver Investing News, Melissa Pistilli (4/8/10)
"Investors are running to gold on deepening debt worries out of the eurozone."
On Monday, positive economic sentiments and a weaker dollar led silver prices to close up over $18/oz. in New York, following similar trends in gold and platinum.
Silver prices took a few steps backward Tuesday, closing at $17.90/oz., as the dollar recovered slightly on less than inspiring economic data out of the eurozone.
Despite the dollar remaining in the green Wednesday, silver took direction from the industrial side of the market and, like gold, rose along with platinum, palladium and copper prices. Silver reached a nearly three-month high of $18.27/oz. before closing at $18.16.
At this level, analysts believe the white metal may be able to take another run at its $18.90/oz. January high; especially if it can maintain the $18.10 level.
Gold continues to give silver a boost as it rides a return to risk-appetite on the Fed's promise to keep interest rates at record lows. The yellow metal has risen nearly $50/oz. on the Comex since last Tuesday and has reached a new all-time record against the euro. Investors are running to gold on deepening debt worries out of the eurozone. The markets seem apprehensive about the rescue plan for Greece's financial troubles, especially with Greek bonds taking a hit from news the nation aims to forego IMF help, and this is pushing some into the safe-haven arms of gold.
Silver prices are also taking a cue from the industrial sector as platinum, palladium and copper post gains on renewed confidence in economic growth, particularly from North American and Asian markets.
Platinum reached its highest level since August 2008 at $1,726.75/oz. and palladium rose to a 25-month high of $508.50/oz. this week. Copper also grew stronger on positive economic sentiment, rising to its highest level in 20 months to over $8,000 a ton.