Contract silver price ended the last full session on contrast sides of break-even. The precious metal entered the new year with some critical moves during the first couple of days of the trading session. Soon after the initial rally during the trading day, silver prices fell by 7%. Yet, a temporary recovery seen throughout last week redeemed what has been lost during the initial trading of 2013.
The silver contract for delivery in March ended the last session up by 38% to finish at the steady price of $31.93 per troy ounce.
Spot silver price trend lines were moving in diverse directions after the last session end.
During the past weeks the precious metal has been trading uneasy under the pressure of rumors. The speculation that the US monetary stimulus known as quantitative easing could come to its end soon brought nerve to the market. This came as a result from the US Federal Reserve monetary committee meeting last month. During the meeting some official showed concerns about the limited effect of ongoing stimulus. US economy is showing signs of revival and there are doubts of quantitative easing impact on the revival.
Stable improvement in the US economy will give back to silver more than gold as silver has larger industrial demand value. On wise move for investors is to spread trade between the two metals. That way the volatility level is brought to a much lower threshold. Markets experts share the view that precious metals will have long exposure at the current levels. That way there is a great opportunity to strengthen their positions. Yet we should be cautious when it comes to precious metals investing. Putting money in such commodities takes a lot of nerve due to the volatility brought by the potential end of the multi-year rally. Though, this is just a speculation which is not likely to happen.
Another important positive driver for silver is the rally trend in platinum prices. The ranging pricing came as a result of Amplats statement that it will stop it output from for South African mines.
There are several events during this week that could cause effect on the silver price outlook. In the list are China’s manufacturing PMI, US home sales reports, BOC interest rate decision, Australia’s CPI and ECB President Speech. The upward trend is expected to continue in the long-term, though a short-term surprise can come from these events.
