Silver has embarked on a late-week rally and punched above the symbolic $18.00 level on Friday. In the European session, the pair is trading at $18.04, up $0.23 or 1.31%.
Silver Climbs to 4-Week High
After trading sideways for four straight sessions, silver has flexed some muscle. The metal climbed 1.4% on Thursday and has added another 1.3% in Friday trade. Earlier on Friday, silver punched past the $18.00 level, which has psychological significance.
Soft U.S. Durable Goods Orders Boosts Silver
U.S. durable goods orders reports disappointed in September. Durable goods orders disappointed, with a decline of 1.1%. This marked the first contraction in four months. The core reading came in at -0.3%, compared to a 0.5% gain in the previous release. As well, manufacturing PMI came in at 51.5, which is barely in expansion territory. These weak releases underscore a weak manufacturing sector, which has weighed on the economy. Precious metals such as gold and silver have taken advantage, as concerned investors moved into safe-haven assets after the soft economic numbers. It is interesting to note that silver’s recent path has mirrored that of gold. On Thursday, gold broke through a key barrier on Thursday, pushing above the $1500 level. This followed a week of sideways trading.