Silver Rises to Two-Week High in Bet on Improved Industry Demand

  • Germany’s manufacturing climb to highest in three months
  • Six major metals traded on London Metal Exchange all gain

Silver futures rose to the highest in more than two weeks after European manufacturing data added to evidence of a pickup in the region’s economy, boosting the demand outlook for metals with industrial uses. Copper also rose.

A gauge of euro-area manufacturing climbed to the highest in 2 1/2 years, according to a report from IHS Markit Monday, while a composite purchasing managers’ index for Germany also advanced. On Friday, some $56.5 million flowed into iShares Silver Trust, the largest exchange-traded product backed by the metal.

The European data helped rekindle demand for silver and other metals, which has fallen this month amid signs of slower global industrial demand and mounting speculation that the Federal Reserve will soon raise U.S. interest rates. Lower rates are a boon to precious metals, which don’t pay interest. Silver, used in everything from electronics to solar panels, surged 35 percent in the first half.

“Any sign of life in manufacturing over there can be a turning point for the Euro zone economy,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “So maybe it’s time that metals, like silver, could start to take off a little bit.”

Silver futures for December delivery rose 0.6 percent to settle at $17.604 an ounce at 1:42 p.m. on the Comex in New York, after touching $17.89, the highest intraday since Oct. 5.

The gain comes after money managers cut their net-long position in silver futures and options for a third week to the lowest in more than six months, according to Commodity Futures Trading Commission data released Friday.

Copper futures for December delivery added 0.2 percent to $2.093 a pound on the Comex in New York.

In other metals news:

  • Gold futures for December delivery fell 0.3 percent to $1,263.70 an ounce on the Comex.
  • On the London Metal Exchange, copper, aluminum, zinc, nickel, lead and tin gained.
  • On the New York Mercantile Exchange, platinum and palladium increased.
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