Silver about to register best weekly profit in 2024 on Chinese demand

Silver prices rose in European trade on Friday on track for the third profit in a row, moving off three-month lows amid strong short-covering. 

The white metal is now heading for the best weekly profit in 2024 as Chinese demand grows through the New Lunar Year holiday, while Chinese authorities launch a fresh batch of stimulus measures to prop up the economy.

Silver Prices Today 

Silver prices rose $23.02 an ounce, with a session-low at $22.89, after rallying 2.5% on Thursday, the second daily profit in a row, and the largest in 2024 away from recent three-week lows at $21.94. 

Precious metals have gained ground overall today following weak US retail sales data, which stymied the advance of US retail sales. 

Weekly Trades 

Silver prices are now up 1.8% so far this week, on track for the largest weekly profit in 2024. 

Chinese Demand 

Shanghai Securities News reported a spike of 155% in average Chinese consumer spending during the New Lunar Year holiday compared to the same period in 2019.

The holiday extends for 15 days, ushering in the “Dragon Year”, which is supposed to brimming with positive energy according to Chinese traditions.

During the holiday, the demand on jewelry spikes, not just for personal use but also as gifts.  

It’s widely expected by analysts that the “Dragon Year” will be one of the best ever for Chinese demand on precious metals and jewelry. 

Silver Institute 

The Washington-based Silver Institute said in its latest report that 2024 will be a “fantastic year” for the white metal, with prices potentially rising to 10-year highs.

The institute expects silver demand to hit 1.2 billion ounces in 2024, the second highest on record. 

The non-profit organization said that strong industrial activities will drive demand on silver, as manufacturing scales up worldwide this year.