Silver Price Supported by Saudi Arabian Attacks

iNVEZZ.com reported that silver extended its rally on Thursday, boosted by safe-haven demand spurred by Saudi Arabia’s bombing of Yemen. Meanwhile, “soft US data” fueled expectations that the United States will delay a hike in interest rates.

As quoted in the market news:

Silver for immediate delivery had climbed nearly 14 cents, or 0.81 percent, to $17.08 per ounce as of 07:10 GMT, and was about 1.9 percent over its 50-day simple moving average of $16.75. The precious metal was changing hands close to the fresh five-week intraday high of $17.11 reached during the previous session.

Demand for safe haven assets such as silver and other precious metals received a boost after officials said that Saudi Arabia and its Gulf region allies launched military operations including air strikes in an attempt to counter Houthi rebel advances in Yemen. Saudi ambassador in Washington Adel al-Jubeir announced during a press conference that the kingdom ‘will do whatever it takes in order to protect the legitimate government of Yemen from falling’.

Silver found further support as the US dollar eased against a basket of its major peers as weak economic data added to last week’s dovish stance by the Fed in prompting investors to push back their expectations over a hike in borrowing costs. Yesterday’s report from the US Census Bureau showed that durable goods orders unexpectedly declined last month. Weak US economic data was also a theme in the comments made by Chicago Fed president Charles Evans in London yesterday.

Click here to read the full iNVEZZ.com report.