Silver continued to rise in price and traded at a 13-year peak, while platinum reached its highest level in the last two years, indicating growing investor interest in precious metals used in the industrial sector, Bloomberg reports, writes UNN.
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Spot silver rose on Friday after jumping 4.5% in the previous session. Platinum's growth continued, rising 1.7%, while gold also rose in price.
According to Nicky Shiels, Head of Metals Strategy at Geneva-based MKS PAMP SA, the rise in metal prices was driven by technical momentum, as well as improved fundamentals, with strong appetite for silver in India and a recovery in platinum demand in China, which fueled the growth.
Silver - and often platinum - usually trade alongside gold, which is considered a safe haven in times of geopolitical uncertainty. Gold has risen more than 40% in the last 12 months as the expansion of the US-led trade war has increased its security appeal, and central banks have maintained high levels of purchases.
While silver and platinum - up 19% and 13% respectively year-to-date through Thursday - have lagged behind the more expensive precious metal, they are also driven by the ebb and flow of industrial demand, the publication writes.
Silver is a key component of solar panels, and platinum is used in catalytic converters of internal combustion engines and laboratory equipment. Both markets are heading for a deficit this year after several years of demand exceeding supply.
Holding above $35 remains a "critical tipping point" for silver and, if sustained, should revive retail interest, Shiels said. A potential recovery in demand for platinum-backed exchange-traded funds could trigger a speculative rally, as persistent and high rental rates indicate the market is tightening, she said.
Investments in platinum ETFs are showing signs of growth and have grown by more than 3% since mid-May, according to data collected by Bloomberg. Inflows into silver-backed ETFs continued to grow from February, with investments up nearly 8%.
Palladium also benefited from rising positive sentiment in the precious metals complex, rising 1.4% on Friday. Gold rose 0.5% to $3368.87 an ounce as of 13:38 in Singapore and 2.4% for the week. The Bloomberg Dollar Spot Index rose 0.1%.
Investors are eagerly awaiting a key U.S. jobs report due later Friday, after an unexpected jump in jobless claims that has increased bets that the U.S. Federal Reserve will cut rates at least twice this year. Lower borrowing costs are generally beneficial to gold and other precious metals, as they do not earn interest.
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