Silver on track for first weekly profit since mid-January

Silver prices rose in European trade on track for the first weekly profit since January as most precious metals gain ground on the back of the decline in US treasury yields. 

US yields stalled after a bearish statement by a Fed official, hurting chances of a 0.5% rate hike in March. 

Prices are also boosted by strong Chinese data this week that showed robust industrial activity, which could lead to higher demand on minerals. 

Prices Today

Silver prices rose 1.3% to $21.15 an ounce, with a session-low at $20.88, after losing 0.4% yesterday, the first loss in three days to near three-month lows at $20.41. 

Weekly Trading

Silver is up 1.9% so far this week on track for the first weekly profit in seven weeks. 

US Yields

US 10-year treasury yields fell 1.5% on Friday off four-month highs at 4.089%, on track for the first loss in four sessions on profit-taking. 

Weaker US treasury yields underpins non-yielding assets such gold and prices, with gold hitting two-week highs at $1,849. 

Fed Remarks

Atlanta Fed President Rafaael Bostic said the Fed will be in a position to end the current cycle of policy tightening by the middle of the year, and that he supports a 0.25% rate hike in March.

Fed Rates

Following such remarks, odds for a 0.5% rate hike fell from 31% to 27%, while odds for a 0.25% hike at least stood at 100%. 

Chinese Economy

Earlier data showed brisk industrial growth in China last month by the fastest pace since April 2012 after months of deterioration. 

As China's economy rebounds, demand on commodities and minerals is expected to improve as well.