Silver prices were rallying Wednesday as the dollar weakened and word emerged that interest from India for the metal has been strong.
July-dated silver contracts were ahead by 14 cents at $13.13 an ounce in recent New York futures market action. "We have seen tremendous physical demand for silver imports into India of late," says Andy Montano, director of precious metals at Toronto-based bullion bank ScotiaMocatta. He also adds that the greenback's slight softness overnight was having a buoying effect on the metal's price. The U.S. dollar was recently trading at 121.48 yen, down slightly from 121.58 yen late Tuesday. The euro was selling for $1.3459, up from $1.345 previously. The prices of dollar-denominated assets, such as the precious metals, tend to increase as the value of the U.S. currency declines. Also adding shine to silver was a bullish annual silver survey from London-based specialty metals consulting firm GFMS. The report's authors project last year's robust market will continue through 2007 with conditions remaining "supportive of prices well into double-digits," meaning above $10 an ounce. Strong investment demand, led by the introduction of the silver exchange-traded fund, iShares Silver Trust(SLV Quote), drove the average price for the metal up 58% in 2006. The ETF absorbed 121 million ounces following its May launch. Meanwhile, demand for silver used in industrial applications fell only 1% during the year despite the higher prices, the report states.- Loading Comments...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,270.47 | 1,093.48 | 2,167.88 | 34.29 |
Oil *
75.55
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UP
73.00
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UP
6.24
|
UP
18.86
|
DOWN
0.17
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10 Yr
3.43%
SPDR Gold
109.74
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|
+0.72%
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+0.57%
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+0.88%
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-0.49%
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