Silver traded above $44 an ounce on Thursday (September 25th), nearing a 14-year high, as increased industrial absorption and tighter physical availability outweighed stronger US macro data that lifted yields and the dollar.

On the demand side, absorption from photovoltaic panels and electronics, where silver is difficult to substitute, has increased, supporting short-term consumption. On the supply side, most silver is produced as a byproduct of base metal mining and cannot expand quickly with prices; recent smelting and processing disruptions at major refining centers have reduced refined metal availability, reduced prompt delivery, and driven up premiums for the metal in the short term.

However, positive surprises in US data this week, including a revised Q2 GDP figure of 3.8% and initial jobless claims falling to their lowest level since July, have tempered expectations of Fed easing and tempered further increases. (alg)

Source: Trading Economics