Silver surged to a three-month high of US$23.22 per troy oz on August 16. Speculation that the US recovery may not yet be robust enough to convince the US Fed to reduce its quantitative easing programme next month has seen the US$ – the currency in which silver is traded – weaken, bolstering demand for precious metals.
The euro zone finally exited recession in Q2 and a vibrant recovery could spur industrial demand for silver. However, the consensus is predicting a price decline over the next four quarters (top table).
You can download a sample of Energy & Metals Consensus Forecasts at www.consensuseconomics.com.