Silver Stockpiles Hit 21-Year High

Silver prices rallied with gold and both metals recovered last week’s closing level in US Dollar terms in London trade on Friday.
Silver prices rose above $16.40 per ounce as government bonds rose with world stock markets and commodities ahead of key US data on retail sales and consumer-price inflation.
Separate data overnight said China’s banks extended more new lending than forecast in April, but were likely overtaken by so-called ‘shadow banking’ loans now facing a crackdown by the Communist authorities.
Silver prices gained almost 1.9% by Friday lunchtime from Tuesday’s 5-month low, rallying faster against other currencies as the US Dollar also gained on the FX market.
“Silver resisted a further test lower in New York on Wednesday,” says a trading note from Swiss refiners MKS Pamp, “with the recent sell-off now looking overdone and interest, albeit likely timid interest, creeping back into the market.”
Gold prices today extended their rally to 1.1% from Tuesday’s 3-month low at $1214 per ounce as Brent crude oil edged further above $50 per barrel.

This post was published at FinancialSense on 05/12/2017.