The shiny commodity is ready to reverse a long time down trend. Silver futures jumped on Monday and continued its hot streak, following an impressive week, to further solidify its bid to overhaul the downward trend it tracked in the last six months of 2016, with firm global cues giving enough support to the commodity.
Spot silver started the week on a high note as it confidently gained 0.3% to settle at $17.17 per ounce as traders placed more bets in the market on high optimism in the global economy amid firming global trends.
The precious metal has extended its rally to four days, capped with an 0.11% surge last week at $17.15 per ounce, and has been on the bullish trend since the start of the year due to higher demand on the commodity as investors turned into safe-haven assets.
The gray commodity suffered a sorry six-month downtrend last year with silver futures losing 24% in the last half of 2016 but is now poised to make a redemption as production kicked higher and demand for cellphone accelerated in 2017.
The Americas Silver Corporation forecasted a strong 2017 for the commodity and saw its production spiking to 2.0-2.5 million ounces while a leading IR research company expected a 1.89 billion phones to be shipped this year.
Also playing a big role to the recent advance of silver was the weakening of the US dollar, which has an inverse relationship with the metal, as the new US President Donald Trump sent the currency into a limbo.