Earlier last week, strong manufacturing data from China and India, amongst other countries provided good profit opportunities in the silver trades.
After retreating nearly 15.5% since early December, spot silver prices advanced almost 5% the past week to post its first gain in five weeks.
The release of manufacturing data in the U.S. on Tuesday saw the oversold metal record its biggest one-day increase in almost three years, rising above 5%.
The increase in risk-on behaviour had investors selling the greenback lifting assets across the board.
Spot silver prices declined altogether approximately 10% last year and analysts expect them to rebound this year, as situations improve in developing economies.
An increase in borrowing costs in the Eurozone, adding to the on going uncertainty, had investors return to their risk averse behavior, causing the price of the white metal to decline late in the week. An unexpected increase in U.S. employment data also provided profit taking opportunities on Friday.
Despite posting a gain for the week, silver prices were closing under $30 for the fourth consecutive week narrowing to a sideways trend. For the week spot prices peaked at $29.738 and bottomed at $27.816.
The gold to silver ratio stood at .56.13 for the first week in 2012.
