Last week, silver began trading on a slight uptrend, but the Euro zone debt srisis pulled it lower mid way through the week. Fears of Italian borrowing costs rising over 7.0% sparked a sell off of the white metal with price falling over 3.0% in a span of two days. Fragile consumer sentiments also prevented the white metal to appreciate as investors look to cover margin calls due to the falling equities.
Despite the recent volatility, silver prices have rebounded more than 30% from the steep loss in late September and are on path to post a gain for the week.
A recent report released by Thomson Reuters, expects outlook for silver prices to remain bullish, adding “with the potential of prices nearing, if not exceeding, the $40 / oz, a realistic prospect as the fourth quarter develops. The report also suggests global investment demand for silver will likely reach a record high in 2011.
Demand for the white metal was boosted on Friday, with Italian bond yields falling below the dreadful 7.0% level, easing investor concerns as risk appetite rises.
Helped by the late week surge in silver prices, the gold to silver ratio also climbed to 51.58.
