Silver Prices Hovering at $18.00
Silver has started the week quietly. In Monday’s European session, the metal is trading at 18.00, up 0.08% on the day.
Silver Breaks Above $18.00
After trading sideways for much of the month of October, silver put together a late-week rally. The metal punched past the symbolic round number of $18.00 on Friday, the first time that has occurred since September 25.
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The catalyst for last week’s gains were soft manufacturing data out of the U.S. Durable goods orders declined 1.1%, while the core reading fell 0.3%. Both releases fell short of the forecasts. As well, the manufacturing PMI came in at 51.5, which is barely in expansion territory. These weak releases underscore a sputtering manufacturing sector, which continues to weigh on the domestic economy. Investors were clearly jittery after these releases on Thursday, as precious metals took advantage. Gold prices climbed close to 1.0%, while silver gained 1.72% on Thursday and added another 1.0% on Friday. These strong gains show that investors continue to view silver a safe-haven asset, which is sensitive to investor risk appetite. Investors are keeping one eye on Wednesday, as the U.S. will release the initial GDP release for the third quarter, and the Federal Reserve will publish its rate decision.