Silver Prices Poised for Large Weekly Gain
London (July 21) Silver prices edged higher through Friday’s morning session, and were on track for solid weekly gains as precious metals extended their recovery.
September silver futures edged up 6 cents, or 0.4%, to $16.40 a troy ounce at 7:38 a.m. ET. The metal fluctuated within a narrow overnight range, trading between $16.28 and $16.41.
Prices are up for six straight sessions and have gained more than 4% this week. The metal has rebounded nearly 6% from the January 7 low.
Despite recent gains, silver’s outlook is perpetually dogged by choppy demand and volatile trading ranges. The metal has made a habit of staging large recoveries following a sharp decline.
Gold continued to trade near three-week highs, buoyed by a brighter market outlook. The August futures contract was last seen trading at $1,247.50 a troy ounce,up $2.00, or 0.2%.
Gold’s premium over silver declined sharply this week as the latter continued to recover from 15-month lows. By Thursday’s close, one ounce of gold was worth 76.37 ounces of silver. The ratio was as high as 78.63 just a few weeks ago.
In currencies, the U.S. dollar was back on the defensive Friday following a short-lived rally. The dollar index (DXY) was trading at fresh 11-month lows, reflecting subdued demand for the world’s most active currency.
The greenback rebounded on Thursday after a pair of central banks kept monetary policy unchanged. The Bank of Japan (BOJ) and European Central Bank (ECB) each voted to keep their benchmark interest rates at record lows.
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