Silver on track for largest weekly profit in 2023 on haven demand

Silver prices rose in European trade after a short hiatus from gains yesterday off five-week highs, with  the dollar currently declining against major rivals.

The white metal is heading for the largest weekly profit in 2023 on strong demand for safe havens amid growing concerns about the global banking sector following the collapse of several local US banks and the crisis with the Credit Suisse bank in Europe.

Silver Prices Today

Silver prices rose 1.4% to $22 an ounce, with a session-low at $21.65, after losing 0.4% yesterday on profit-taking away from five-week highs at $21.53.

The Dollar

The dollar index fell 0.4% on Friday for the second session against a a basket of major rivals, underpinning silver prices.

Dollar's current decline comes as calms spread in the global markets with US and Swiss authorities intervening to provide financial support to the banking system.

Weekly Trades

Silver prices are up over 7% so far this week on track for the second largest weekly profit in three weeks, and the largest since November 2022. 

Haven demand on silver remains strong following the collapse of the SVB and two other banks in the US, and the troubles facing the Swiss Credit Suisse bank.

Chinese Demand

Recent data showed China's industrial output accelerating in February, with Chinese retail sales rising as expected in February.

Such data bolstered hopes of improving Chinese activities and improving demand on precious metals after the government eased Covid 19 restrictions.