Silver up more than 35 in 2024
China growth story to be key for the metal

Sept 26 Reuters Silver prices have bubbled up to their highest in over a decade on the back of bullion39;s stellar bull run and China39;s stimulus measures, although some analysts expect the rally to fade as industrial sector demand remains a concern.

Spot silver both an investment asset due to its relationship with gold and an industrial metal rose to 32.71 per ounce on Thursday, its highest since December 2012, and has gained more than 35 so far in 2024, leading the precious metals complex.

China39;s central bank unveiled its biggest stimulus this week since the COVID 19 pandemic and is expected cut its sevenday reverse repo rate. The U.S. Federal Reserve lowered interest rates with a halfpercentagepoint reduction last week.

China stimulus is giving industrial metals a boost, something silver traders had been waiting for, Ole Hansen, head of commodity strategy at Saxo Bank, said.

Continued gold strength combined with stable to higher industrial metal prices should see silver continue to outperform gold, with the goldsilver ratio falling back towards the 70 to 75 area, potentially driving a 10 outperformance in silver, Hansen added.

The goldsilver ratio, denoting how many ounces of silver one ounce of gold can buy, is used by the market to gauge future trends as it indicates silver39;s current performance against its historical correlation with gold.

Interest rate cuts should provide…