After posting a 3.9% gain last week, spot prices were on path to record its second weekly gain with prices approaching the $30 mark.
The losses were reversed throughout the week with spot prices rallying every single day with the exception of Friday.
Currently analysts see silver prices staying buoyant because of an increase in demand from speculators, hedge funds and metal buying ETF’s looking for a cheap substitute for gold. On the flip side, the slowing global economy has dried up a lot of industrial demand, a reason some analysts believe the prices will correct marginally.
The decline in the greenback, coupled with speculation of China easing its monetary and fiscal policies to strengthen its economic growth also saw prices rise above the $30 mark for the first time since mid - December.
However, by the end of the week prices fell under $30 as the depreciating euro (against the USD) weighed on the bids for silver.
Despite the late week dip, spot prices were still headed towards a second consecutive weekly gain in excess of 3.0%. The gold to silver ratio slid to 54.83 after a reading of 56.13 last week.
Courtesy: CPM Group for DGCX
