Last week, spot silver rallied a expected, posting a monthly high of $35.653 on Friday.
Fresh news of US economy’s expansion in Q3 helped push the precious metals higher as markets continue to grow in confidence. Spot silver prices added more than 16.3% from the start of October and are expected to rally higher further in Q4, especially after the EU reached a positive agreement.
Silver prices were also pushed higher by a weak USD. Silver for December delivery, posted a five-week high as optimism over EU deal triggered demand for the precious metal.
Analysts are seeing the industrial component of silver kick in as it tries to catch up to gold. Uncertainty over how the EU plan will play out also encouraged investment for the dual – purpose metal.
Recently, Citigroup raised its silver forecast for 2012 to an average price of $32.90/oz from an earlier prediction of $26/oz, with macroeconomic and financial factors expected to continue propelling prices higher.
The gold to silver ratio broke to the down side, sliding to 49.40 after rising to 52.58 the week prior, with much of the fall coming from the rise in silver price.[mpoverlay][/mpoverlay]
