Silver Prices Eye Modest Weekly Gain as Dollar Pressure Resumes

New York (May 12)  Silver prices nudged higher on Friday, putting the metal on track for slim gains this week.

July silver futures advanced 11 cents, or 0.7%, to $16.37 a troy ounce at 7:37 a.m. ET. Prices fluctuated overnight between $16.30 and $16.45.

The grey metal is on track to snap a three-week losing streak, having gained 0.4% since last Friday.

Gold prices also consolidated on slightly higher ground Friday. The June futures contract advanced $4.10, or 0.3%, to $1,228.30 a troy ounce. Bullion is on track to break even for the week.

The gold/silver ratio used by investors to price entries into precious metals has declined slightly this week. As of Thursday, one ounce of gold was equivalent to 75.43 ounces of silver.

A rebounding dollar placed downward pressure on commodities over the past five days. The U.S. dollar index is up 1% for the week, and was last seen trading at 99.62.

The German government released a preliminary estimate of first-quarter GDP growth Friday that showed faster expansion in Europe’s largest economy. Germany’s gross domestic product accelerated 0.6% in the first quarter, which translated into a year-over-year gain of 1.7%.

Separately, Germany’s final April consumer price index (CPI) came in at 2% year-over-year.

In a separate report on Friday, the European Commission’s statistics branch said Eurozone industrial production dipped 0.1% in March, following a downwardly revised 0.1% drop the month before. Compared to a year earlier, output rose 1.9%, official data showed.

European stocks registered gains through the midday, with the region’s major bourses all trading higher. The pan-European Stoxx 600 Index edged up 0.1% and was on track to break even for the week.

Source: EconomicCalendar