Silver rallied on its improved outlook given by a global consultancy firm and higher bullion prices also supplemented its price rise.
The global researcher of metals and consultant GFMS said in its report that the metal will see continued investment and industrial demand.
The consultant said silver is likely to average $19.94 in 2010, a 36% increase on the year and prices may breeze through $30/oz in 2011.
Key Observations
Silver futures for December-delivery gained more than 5% to close at $26.83/oz yesterday. The dollar index, which measures the greenback against a basket of six major currencies, declined 0.63% to 78.585 yesterday.
The euro recovered on possible bailout package to Ireland which led a fall in the dollar. The dollar’s declines were supported by positive economic reports from the U.S. in the form of falling jobless claims and improving manufacturing activities. Bulls were seen getting back into action in stock markets also.
The benchmark MSCI World Index for stocks closed 1.61% up. I Shares Silver Trust’s silver holdings were recorded unchanged at 10773.56 MT yesterday.
MCX silver futures for December-delivery closed 3.55% up at `40,463/kg yesterday.
Outlook
Silver prices for December futures soared higher to $27.07/oz in Asian sessions, tracking firm bullion prices.
Asian stocks are also advancing and market sentiments may remain positive for riskier bets after Ireland getting a bailout.
Increased price outlook by the GFMS will also continue to support the prices.
