Silver Prices Are Relax, Outlook Show Capable

Silver Prices Are Relax, Outlook Show Capable

Following a strong rally, silver prices declined slightly in Thursday’s trading, impacted by upcoming speeches from Federal Reserve officials. In addition, the momentum in the U.S. dollar has also impacted the gray metal in the latest session. The USD Index, which tracks the U.S. dollar to its major rivals, increased to nearly the highest level in the last two weeks. The USD index is currently standing around 100.50, up almost 0.9% this week. The growth in the U.S. Dollar was driven by strong economic reports, including higher than expected GDP growth in the fourth quarter. In Q4, U.S. GDP was revised to 2.1%, compared to the consensus estimate of 1.9%. The growth in GDP was the result of strong consumer spending in the fourth quarter, increasing 3.5% from 3% in the same period last year, mostly accounting for the amendment to GDP. Silver prices always have a direct correlation with currencies, inflation numbers and Fed’s monetary policy. Silver prices declined to $18.07 per ounce, down from March 2 high of $18.43. However, several analysts expect silver prices to rebound in the coming days, supported by the dovish US fed interest rate outlook. In addition, U.S. government also attempts to depreciate the USD, as the higher dollar could have a strong impact on exports, which is deemed the backbone of the United States. In addition, an expected growth in U.S. manufacturing, industrial and infrastructure activities could also add to silver prices and its demand. Silver has outpaced gold and the S&P 500 by a wide margin. Silver soared almost 13% since the start of this year, beating gold and the S&P 500, which increased 5.77% and 8.47%, respectively. Silver prices increased almost 31% since the start of fiscal 2016. Although past performance isn’t the guarantee for successful future, if silver extended its current momentum, it could rally more than 60% this year.