Silver has thus far spent the entirety of this week below last week's high point of $22.48 per ounce, but it looks as though the white metal may be starting to shift upward.
Monday, silver traded as high as $21.58 early in the morning, possibly due to "a slight rekindling of flight to quality sentiment" or "news of a reduction in quarterly silver production," as per Capital Trading Group's daily report.aHowever, it wasn't long before silver started to sink, eventually ending the day at $21.27. That fall continued on Tuesday, with the white metal hitting $20.63, its lowest price this week, early in the day. Though silver soon picked itself up, rising to $21.40 later in the day, Capital Trading Group speculated that putting the bulls "back in control of the silver market might require a rally back above $21.45, or full blown fears that the US simply won't avoid a default." Wednesday was an exciting day for the United States, which avoided a debt default and ended its government shutdown with a deal reached late in the day. Unfortunately for silver bugs, it was not an exciting day for the white metal — it stayed between $21.18 and $21.42, apparently taking no cues from the to-do. That, however, changed today, when silver rose abruptly to $22.15 early in the morning. Though it has since eased off from that point, closing the day at $21.89, the white metal is still faring better than it was at the beginning of the week. The question now, according to Capital Trading Group, is whether "economic conditions will foster improved physical demand for silver" or if this morning's price increase is "simply a knee jerk technical reaction." For its the part, the firm is concerned that because tapering is still a threat, the rise in prices will not last long.