Silver eased to $57.02 per ounce early Thursday, a $1.19 drop from the previous day, even as the metal holds gains of more than 150% over the past year. The pullback leaves prices near decade-high levels after a rally that has outpaced gold.
Silver cost $57.02 per ounce at 5:30 a.m. Eastern Time on Thursday, a $1.19 fall from a day earlier and more than a $19 increase compared with a year ago. The daily move marked a 2.04% decline from the prior session.
A rally that outpaced gold
The near-term dip sits against a much larger climb. Silver's price has improved more than 150% over the past year, reaching decade-high levels. Measured against last year's price of $37.90 per ounce, the metal is up 50.44%.
But the path has not been smooth. Silver traded at $69.97 an ounce one month ago, an 18.50% premium to Thursday's level, showing how sharply the metal has retreated from its recent peak. Fortune notes that silver's price swings are more pronounced than gold's because of its industrial applications.
What is driving demand
The rally over the past year likely stems from limited supply and growing demand from industrial and investment sectors, according to Fortune. Rising industrial uses, from solar to electronics, could potentially drive further gains. The metal's appeal also lies in its role as a hedge against inflation.
Silver against the wider metals complex
Among precious metals early Thursday, gold traded at $4,033.55 per ounce, with platinum at $1,667.40 and palladium at $1,284.51. Fortune says silver's performance over the past year has bested gold's, and that some analysts predict a continued uptrend that may potentially push prices to all-time highs.
Source: Fortune
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