Silver futures slowly zooming in to $17 on US dollar correction

Silver futures

Will the shiny commodity break the boundaries?

Silver futures kept its strong pace on Thursday trading and rallied sharply amid a volatile session as US dollar continued paring some gains recorded on the post-election rally.

Slowly Inching

Silver futures posted a 0.7% gain yesterday, adding 12 cents, to settle at $16.95 a troy ounce, just o.05 cents away from reaching the $17 level.

The precious metal earlier rose to 1.1% and was tiptoeing at $17.02 but gave up slight gains in the afternoon as investors became a little cautious few hours before the first news conference of President-elect Donald J. Trump.

Silver already posted 2% in the second week of the year to stretch its New Year surge to nearly 6%, where prices hit their highest peak since December 14.

These gains in the early onset of the year were attributed to the weakening of the dollar as the currency furtherly gave up its strength tallied after the November 8 elections.

The US dollar index, which tracks the greenback against a basket of major currencies, tumbled 0.4% yesterday and closed down at 101.36, with the Japanese yen surging up at 114.00 and the euro finishing up at 1.0685 versus the US currency.

Silver prices have been bearish since August last year due to the prevailing talks about the Federal Reserve’s interest rate hike and continued diving below the $17 mark when the central bank finalized the increase in key rates.

But the commodity made an early rebound to kick off the year on a high note and erased its 2016 losses, steered by the strong demand for silver form the solar energy sector and the said correction in dollar, which may push prices even back above the $21 level.

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