29-Apr (Bloomberg) — Silver climbed to the highest in a year and headed for the best month since 2013, getting a boost from the dollar’s slump and an improving outlook for industrial demand. Gold neared a one-year high.
All precious metals rose as a gauge of the dollar touched an 11-month low after weaker-than-expected U.S. economic growth cut prospects for higher interest rates, adding to the appeal of non-yielding assets. Traders now see a 59 percent chance of the Federal Reserve raising borrowing costs this year, down from 64 percent at the start of this week.
Silver’s 15 percent surge this month has bettered gold’s advance amid optimism that industrial usage will increase as China’s economy shows signs of stabilizing. About half of the metal’s demand comes from products ranging from electronics to solar panels. The country’s silver imports climbed 39 percent in March, rebounding from the lowest since 2014, customs data show.
“Investors’ confidence that the Fed will increase the rate at the next meeting has declined, leading to the dollar weakening and driving the up the prices for the precious metals,” Dmitry Kolomystyn, the chief commodities strategist at Sberbank CIB, said by phone from Moscow. “Silver is rocketing” and has also benefited from improving Chinese demand, he said.