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. 

Yen declined in Asian trade on Friday against a basket of major rivals, resuming losses after a two-day hiatus against the dollar, while heading for the third weekly loss in a row after the Japanese economy slid unexpectedly into recession. 

The new growth data cast doubt on the possibility of the Bank of Japan exiting current ultra-easy policies this year, in turn pressuring the Japanese currency. 

USD/JPY 

USD/JPY rose 0.3% to 150.36, with a session-low at 149.82.

The yen rose 0.4% on Thursday, amid attempts to recover from three-month lows at 150.88. 

Yen was also boosted by official remarks from Japanese officials on intervention to support the local currency. 

Japanese forex officials warned on Wednesday that authorities are monitoring forex movements closely, and will take necessary measures to support the local currency if needed. 

They said the latest moves were too quick and could have a negative impact on the Japanese economy. 

Weekly Trades

The yen is down 0.75% so far against the greenback, on track for the third weekly loss in a row. 

Recession 

Earlier Japanese data showed GDP contracted 0.1% in the fourth quarter of 2023, while analysts expected a 0.2% growth rate.

The data shows the ongoing pressures on the world’s now fourth largest economy, and the continuous need for aggressive policy easing. 

US Yields

Otherwise, US 10-year treasury yields rose 0.5%, resuming gains and boosting the greenback. 

The developments came after bullish remarks from Fed officials and strong US data, which hurt the odds of early rate cuts in March and May. 

US stock indices rose on Thursday following a spate of important data earlier today.

US retail sales rose 0.8% in January, beating estimates of a 0.3% decline. 

US unemployment claims fell to 212 thousand lat week from 220 thousand, also beating estimates of an increase to 219 thousand.

Now investors await crucial US producer prices data tomorrow to gauge the status of inflation, which will impact the Federal Reserve’s monetary policy decisions this year. 

On trading, Dow Jones rose 0.5%, or 193 points as of 17:00 GMT to 38,617, while S&P 500 rose 0.2%, or 8 points to 5009, as NASDAQ slipped 0.1%, or 14 points to 15845. 

Oil prices fell in European trade on Thursday, extending losses for the second session in a row and moving off two-week highs on profit-taking, amid concerns about US oversupply. 

Official data showed a surge in US crude stocks last week according to the EIA, with production hitting record highs.

Global Oil Prices 

US crude fell 1.25% to $75.55 a barrel, while Brent declined 0.9% to $80.74 a barrel, with a session-high at $81.93. 

US crude lost 1.6% on Wednesday, while Brent fell 1.4%, the first loss in eight days away from recent two-week highs.

US Commercial Stocks 

Official data from the Energy Information Administration showed US commercial crude stocks rose 12 million barrels in the week ending February 9, the third weekly increase in a row, and the largest since early November, while analysts only expected a buildup of 3.3 million barrels. 

According to the data, total US crude stocks thus surged to 439.7 million barrels, in a negative sign for demand in the world’s largest fuel consumer. 

US Production

The EIA also announced no change in US crude production at 13.3 million bpd last week, a record high. 

The EIA doesn’t expect US oil production to surpass that record until February 2025.