Silver prices sensitive to shifts in industrial demand
Beijing (Mar 4) Movements in China industries are likely to drive global silver prices, according to Allocated Bullion Solutions(ABS). ABS sees downward pressures persisting over silver price trends as China industrial recovery is unlikely to happen in even in the longer term.
ABS says the price of silver is likely to track movements in gold, but it tends to be more sensitive to shifts in industrial demand.
“We believe downside pressures are likely to remain driven by indicators of Chinese industrial production - which in our view is unlikely to recover to previous levels even in the longer term - in addition to lower silver intensity in electronics and photographic applications.”