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After losses last week prompted by one central bank — the Federal Reserve — silver gained on news from the ECB, another central bank.
Silver headed into the weekend with losses after the latest Federal Open Market Committee minutes revealed that some Federal Reserve members want to reduce or stop bond-buying purchases this year. Though gold continued to have a negative reaction to this news at the start of the week, silver diverged from its yellow peer and spent much of Monday’s trade in positive territory. Unable to hold onto those gains, however, the metal started the week with a New York closing price of $30.16.
On Tuesday, silver got onto a positive track again. This time, the metal managed to finish the day up $0.25 at $30.41. Much credit was given to short covering and bargain hunting, especially in the gold market, which seemed to give silver a boost.
CME Group (NASDAQ:CME) also noted in a market report that March silver seems to have found some measure of support off an extending consolidation pattern on the charts, with a rather extensive series of lows seen just below the $30 level.
Some traders think that the $30 level on the charts has become a critical pivot point, CME Group added.
That price point indeed seems to be in the minds of some market participants.
Ira Epstein of Linn Group, who believes that without a catalyst silver will have difficulty rallying in 2013, said “[a]t $30, silver is no bargain.”
Precious metal firm MKS reported that silver continues to see demand under $30 mainly from Chinese buyers, who are keeping the metal propped up for now.
On Wednesday, silver aimed for the upside and made some progress intraday. But in addition to a lack of fresh fundamental news to provide support, many market participants showed restraint ahead of the European Central Bank (ECB) meeting scheduled for Thursday. Dragged down by a weak gold market and weak euro, silver lost a nickel for the day.
However, on Thursday it was quite a different story as both gold and the euro rose on upbeat news — including the decision to hold interest rates steady — from the ECB. Also boosting sentiment was news of a positive Spanish bond auction and positive trade data from China.
The close
March silver on the COMEX ended floor trading Thursday near the session high at $30.90, with gains of $0.65. The New York spot market closed with silver at $30.86, up $0.50.
Company news
Silver Bear Resources (TSX:SBR) received a four-year extension for its exploration license for the Mangazeisky silver property in Yakutia, Russia. It allows the company to continue exploring until December 31, 2016.
The company has also applied for a mining license on the Vertikalny portion of its territory. Silver Bear said it continues to consult with Russian authorities on the best way to obtain mining rights for the largest possible mineral resource base.
Tinka Resources (TSXV:TK) resumed drilling at its Colquipucro and Ayawilca projects in West-Central Peru.
NSX Silver (TSXV:NSY) commenced phase-two drilling at its Dios Padre silver project in Sonora, Mexico. The company’s objectives are to expand the mineralized zone at depth following the plunge of the mineralized breccia intrusive body and to support a NI 43-101 compliant resource estimate.
NSX also announced plans to conduct a trenching program at the Heurigo silver anomaly, which is located 5 kilometers from Dios Padre.
The management of Apogee Silver (TSXV:APE) was encouraged by the level of support expressed for its Bolivia-based Pulacayo project during a community consultation meeting. The company said none of the concerns expressed are issues that cannot be reasonably addressed in due course.
This important milestone allows the company to conclude its application for a new environmental permit for expanded production as well as the construction of a processing and tailings storage facility at Pulacayo, the press release states.
Wildcat Silver (TSXV:WS) announced the results of drilling in the center of the proposed open pit at its Hermosa property in Arizona, US.
Highlights include HDS-324, which returned 44.2 meters of 219.8 g/t silver and 5.09 percent manganese; HDS-326, which returned 13.7 meters of 338.1 g/t silver and 9.91 percent manganese; and HDS-327, which returned 64 meters of 151.6 g/t silver.
Silver Bull Resources (AMEX:SVBL,TSX:SVB) released a 2012 year-end review that outlines the company’s achievements. It also maps out its plans for the current year.
In Q1 2013, Silver Bull plans to release its fourth NI 43-101 resource update on the Sierra Mojada project in Northern Mexico. It will include drill results from the 2012 underground twinning program, which management deems an important program.
Based on the updated resource report figures, management will proceed with completing the maiden preliminary economic assessment on the Sierra Mojada project in Q3 2013. Afterwards, Silver Bull plans to dedicate the remainder of 2013 to mine feasibility study programs in contemplation of an initial feasibility study on the project in 2014.
Securities Disclosure: I, Michelle Smith, do not hold equity interests in any of the companies mentioned in this article.