Though the week began with a United States holiday, on Monday silver was still able to manage gains that boosted it above the $32 level, although only by a mere two pennies. Silver was not done, however, and continued adding to its positive record. By the end of trading on Wednesday, silver had amassed a string of eight consecutive gains and was resting at $32.23.
Furthermore, a portion of silver's progress came without support from
, with the white metal outperforming its yellow peer on Wednesday.
After hitting a five-week high, March silver on the COMEX ended near session highs. The metal finished the day with gains of $0.02 on the New York spot market. In contrast, February gold ended the US session near its lows of the day. At the close of the New York spot market, the yellow metal had lost $7.
Morgan Stanley (NYSE:
) slashed its forecast for gold, citing — like many other market participants — expectations that silver will outperform the yellow metal on a relative basis this year.
In the near term, some are skeptical about silver's ability to make significant and sustainable upward moves. Although silver has been posting pluses, which have allowed it to move back into bull territory, it has shown a tendency to struggle to make meaningful progress above the $32 level.
Standard Bank believes momentum in the gold market could be helpful.
Part of gold's problem is that some safe-haven demand appears to be giving way to risk appetites. Also, some market participants are disappointed that the metal has failed to break through the $1,700 level.
“Silver could rally towards $32.60 especially if gold manages to test $1,700. However, tactically we would sell into rallies above $33. Also, we doubt that silver could sustain trading above $33 throughout Q1:13,” Standard Bank strategist Walter de Wet stated in a market note.