Silver price rises for second straight session on physical demand
iNVEZZ.com, Monday, January 05: The price of silver has risen sharply so far in today’s trading session. The precious metal has reversed earlier losses on strong physical demand which offset pressure from US dollar strength.
Silver for immediate delivery had risen nearly two percent, or 30 cents, to $16.02 as of 06:31 GMT, and was trading close to one percent below its 50-day simple moving average of $16.18. The precious metal recovered losses incurred earlier during the day and has risen for a second straight session. According to a precious metals trader in Hong Kong cited by Reuters:
“We opened lower because of the euro. But with the Shanghai opening, prices turned positive […] I would be cautiously long in Asian hours and would be looking to square positions in Europe opening.”
Lv Jie, an analyst at Cinda Futures Co. in China, was quoted by Bloomberg as saying: “Political instability in Greece and expectations for quantitative easing in Europe combine to weaken the euro against the dollar […] The weaker euro should pressure precious metals lower but there may be an element of safety.”
The price of silver for March delivery had risen 23 cents, or 1.48 percent, to $16.03 as of 06:33 GMT. Scotiabank wrote in a report from Friday that even though the downtrend is still intact “momentum has been weak and the recent price low in the $14.28 area was not matched by a new low in RSI. This low remains the level of support, with resistance at the recent high of $17.32.”
Based on the two most actively traded COMEX contracts, with a total volume of trade in gold and silver of 34,612 contracts as of 06:33 GMT today, the gold:silver ratio was at 74.56. The ratio was down one percent from last week’s 75.37 close.