Silver prices are soaring for the 2nd consecutive day. As at 09:02 GMT, the precious metal was up by 2.14% to trade at $23.10. The market is reacting to the strong manufacturing PMI numbers from different markets. Besides, silver’s safe haven appeal has risen as the U.S. market indices and the dollar are on the decline.
Strong manufacturing PMI numbers cause silver to shine for the second day
Silver is an industrial metal used in manufacturing sectors worldwide. Some of its uses include the manufacturing of mirrors, solar panels, and kitchenware. The manufacturing PMI measures the performance of a country’s manufacturing industry. Higher-than-expected numbers indicate increased demand for manufactured goods; an aspect that results in the heightened demand for silver. Subsequently, investors looking to trade silver are keen on manufacturing PMI from the major silver consumers.
To begin with, the market is reacting to China’s strong manufacturing PMI numbers. China is one of the largest consumers of this precious metal. As such, the stability of its economy is good news for silver prices.
On 30th November, the China Logistics Information Center indicated that the country’s manufacturing PMI was at 52.1. The figure was higher than the previous 51.4 and the forecasted 51.5.
Today, Markit has highlighted a similar trend. China’s Caixin manufacturing PMI rose to 54.9. The number is an upsurge from the previous month’s 53.6. Expert had forecasted the PMI to reach 53.5.
Japan’s manufacturing PMI has also surpassed expectations. It has risen to 49.0. Experts had forecasted that the number will remain unchanged at the previous 48.3. Despite the bullish trend in the two countries’ manufacturing sectors, some nations have
