Silver Rises as Optimism on Greek Debt Deal Falls

On Wednesday, silver rose 1.8 percent to reach $17.58 an ounce, according to Reuters. It seems the white metal took a cue from gold‘s increase.

Silver’s positive price movement also came amidst a fall in European optimism over a possible debt deal for Greece, as well as an easing in the euro’s exchange rate. Greece’s new government has proposed that official creditors exchange debt for growth-linked bonds, dropping its call for a write off of its foreign debt.

Additionally, China’s central bank has relaxed its monetary policy by cutting its reserves as a measure to promote economic growth. As the country is a major importer of raw commodities, this move could increase demand for precious metals.