Silver traders finding refuge in safety of USD


Last week, silver moved sideways for the entire week, leaning more towards the bearish side.

Demand for the white metal continues to be muted with investors persistently finding refuge in the safety of the USD.

Spot silver prices posted a second consecutive weekly drop, sliding approximately 2.8%. Silver prices have also been,trending lower recently because analysts expect inflation to ease in the months ahead reducing an investor’s need to hedge.

Debt problems in Europe and U.S. are throttling economic growth, keeping inflation restrained. Concerns of slowing economic growth have also reduced demand for silver, which relies heavily on industrial use, adding downward pressure to the price.

A fall in demand from India, the largest consumer of the white metal, is also contributing to the woes it currently faces.

The absence of US participants near the latter half of the week to celebrate the Thanksgiving holiday kept prices relatively range bound, but weakness seems evident in the precious metal markets with investors swinging more towards the risk – off sentiment.

For the entire week, spot silver prices edged down with the exception of Tuesday, when it surged almost 3.8% getting support from the upside in gold and base metal prices.

The gold to silver ratio increased to 54.10 from 53.18 last.


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