Silver Soars to 12-Month High
Adam Pike, News Editor
13 Apr 2016, 8:58 a.m.
Silver has continued to rally this week, recovering 8.4% (+£0.87/ oz t) after a four week period of downward pressure to reach a 12-month high. The precious metal had faced some minor resistance having passed £11 per troy ounce in March, culminating in a month-low of £10.45 per ounce last Monday. Since the start of the year, silver has gained 20% (+£1.90/ oz t).
Over the course of the last week, however, there have been signs that this resistance was only short-term, rather than the end of the precious metal’s bullish start to 2016. Precious metals rallied last Tuesday as European stocks suffered losses across the board and the dollar fell to a 17-month low against the yen.
Gold’s strong performance in the first quarter of 2016 appears to have continued into April on the back of high safe-haven demand and a softening dollar. A sharp fall for the dollar yesterday saw it hit a near 8-month low, boosting demand for gold and pushing it to a three-week high. Gold remains up 22.2% (+£160/ oz t) since the start of 2016.
Falling stocks and weak growth around the globe indicate that we are not out of the woods yet and there may be some life left in the latest bullish run for gold. Platinum has also increased in value in the last week, gaining 3.44% (+£23.11/ oz t).