Yet for another week, silver price moved sideways, though it was poised to post a gain after a 1.87% loss last week.
Prices were boosted higher with risk returning to the market, led by the team effort of six central banks to lower dollar borrowing costs for European banks.
A report released by HSBC, sees silver prices rising to $34 in 2012 before falling to $32 in 2013. This is mainly because the bank expects strong demand from ETF’s and coins along with steady industrial demand to keep the price buoyant in the months ahead. The bank added that strong retail investment demand for coins and small bars should push the price up moderately.
So far this year, spot silver prices have increased more than 6.0% and investors continue to remain wary of silver.
Disappointing industrial data from China and the euro zone held back the increase on Thursday and continued to sour investor demand from the white metal. The slide in greenback, boosted by an increase in investors risk appetite also fuelled demand for the dual – purpose metal.
The gold to silver ratio decreased to 53.47 from 54.10 last week.
