Silver price holds up, but rally starts to feed on itself

LONDON (Aug 19)  Silver is holding up well amid a remarkable short-covering rally that's sent prices to a 3-month high, in turn stoking investor appetite for the metal. Mitsubishi strategist Jonathan Butler notes bullion rose last week despite lower US jobless claims that fueled concerns of a QE tapering by the Fed. "Technical and geopolitical factors are likely to continue to overshadow the macroeconomic picture," says Butler. "Silver's recent rally is likely to attract further investor attention [and] the price rise could become self-sustaining as technical levels are breached, although silver could start to look over-extended," he adds. Spot silver -0.2% at $23.153/oz.