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The silver market has been on a wild ride this week; first the metal was tugged as part of the reaction to China’s surprise rate hike.
By Leia Michele Toovey- Exclusive toSilver Investing News
On Thursday, it was back to a downward trajectory for silver, as the greenback was finally able to inch out some gains. Silver commenced trading at $23.88 showing a decline of one nickel, slipping rapidly within the first half-hour of trading, losing about 25 cents to touch $23.65 per ounce. A climbing greenback was the direct result of the announcement that The New York-based Conference Board’s index of leading economic indicators climbed 0.3 percent. This is the third straight month that the economy’s prospects rose, reassurance that a recovery is currently underway.
In the near term, precious metals traders will be paying close attention to a G-20 meeting that kicks off on Friday in South Korea. The focus on the participating nations will likely be currency. If any strategies are planned that may directly impact currency prices, then silver prices can expect to respond, in sentiment, to these measures.
December silver futures closed down 64.9 cents at $23.215 an ounce Thursday. Prices closed nearer the session low and hit a fresh two-week low. The metal is currently hitting resistance at $23.50 and then at $23.675. For next week, analyst’s project that silver will hit resistance at this week’s high of $24.415, and will find support at $23.00.
Analysts claim that the underlying tone for silver remains bullish; as evidence, Credit Suisse raised both its precious and base metals forecasts. In a report to clients, Credit Suisse boosted its gold forecast 19 percent to $1,314 per ounce and its silver price projection to $22 per ounce. On the base metals side, its copper estimate was raised 13 percent to $3.95 per pound.
On the international markets Silver futures prices fell by Rs 47, or 0.13 percent, to Rs 35,632 per kg on the MCX. Metal for delivery in March declined by Rs 43, or 0.12 percent, to Rs 35,755 per kg, with a business turnover of three lots. Meanwhile, silver lost 0.63 percent to US $23.78 dollar an ounce in the Asian region.
Company News
Paramount Gold (CSE: PZG) announced today that its drill program to expand gold resources at its recently acquired Sleeper Gold Project in Nevada will commence next week. Details of the $3 million exploration program were announced by Paramount on September 13, 2010. The exploration program will focus on two resource areas near historical mining, the West Wood Vein and the Facilities target.
Oro Gold Resources Ltd. (CSE: OGR) reports completion of a 14-hole, 1,200-metre reverse circulation drill program on its 100 percent-owned Cimarron property near Mazatlan, Mexico. Drilling focused on expanding known gold mineralization at the Calerita target located in the central part of the 82 km2 property. Cimarron is situated on trend and approximately 10 km northwest of the Rosario mine- the most prolific past producer of gold and silver in a region that became renowned as the Gold Coast.
North America’s largest silver miner is stepping up exploration. Hecla Mining Company (NYSE:HL) plans on spending $20 million on exploration this year, nearly double the amount last year. The reason for the dramatic increase in exploration spending, is the fact that the company’s CEO believes that each of the company’s four major properties hold significant potential for resource expansion. In addition to being the largest silver producer, Hecla is the oldest precious-metals mining company in North America, and one of the lowest-cost primary silver producers in North America. Headquarters in Coeur D’Alene, their main properties include Greens Creek, Lucky Friday Mine, the San Juan JV, and the San Sebastian.
With help from Assistant Editor Vivien Diniz