Silver futures rallied on Tuesday, as market sentiment strengthened as upbeat economic data boosted the outlook for the global recovery. Silver was trading up 2.65% for the day and outlook for the global recovery was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August.
Sep 03, 2013 08:40AM GMT
Silver futures rallied on Tuesday, as market sentiment strengthened after upbeat economic data on Monday boosted the outlook for the global recovery.
On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD24.13 a troy ounce during European morning trade, up 2.65%.
Silver prices traded in a range between USD24.02 a troy ounce, the session low and a daily high of USD24.28 a troy ounce.
Comex floor trading was closed Monday for the Labor Day holiday, and yesterday’s transactions will be booked with today’s trades for settlement purposes.
Silver prices were likely to find support at USD22.88 a troy ounce, the low from August 23 and at USD24.46, the high from August 29.
The outlook for the global recovery was boosted after data on Monday showed that Chinese manufacturing activity expanded for the first time in a year in August.
In the euro zone, reports showed that manufacturing activity in Spain and Italy returned to growth for the first time since 2011, fuelling optimism over the global economy.
Manufacturing is a key driver of silver demand as it is used in solar panels and electronics as well as jewelry.
Silver traders now looked ahead to key macroeconomic data later this week that will determine when the U.S. will begin withdrawing its stimulus measures.
The U.S. will release a closely watched report on U.S. nonfarm payrolls on Friday amid ongoing speculation over when the Federal Reserve will start to taper its USD85 billion-a-month bond-buying program.
Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the near-term.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Elsewhere on the Comex, gold for December delivery shed 0.6% to trade at USD1,387.40 a troy ounce, while copper for December rallied 1.85% to trade at USD3.293 a pound.
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