Silver prices have risen as the precious metal’s appeal as a store of value heightens. Additionally, China’s bullish industrial output data has contributed to the rallying of the commodity’s price. On a 2-hour chart, silver is up by 1.18% to trade at $24.10.
China releases bullish industrial output numbers
Silver is an industrial metal. Furthermore, China is a major consumer of the commodity. Consequently, data on the country’s industrial sector is of interest to those who are keen to trade silver.
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On 15th December, China’s National Bureau of Statistics (NBS) released data on China’s industrial production YoY. According to the agency, the value of industrial output has increased by 7.0%. The figure matches the forecast, and represent an increase from the previous 6.9%.
On a year-to-date basis, November’s Chinese industrial production rose by 2.3% compared to the preceding month’s 1.8%. These numbers are good news to bulls in the market; an aspect that has resulted in the rallying of silver prices.
At the same time, the market is reacting to numbers on retail sales in the Middle Kingdom. According to the NBS, November’s retail sales YoY improved from the previous 4.3% to 5.0%. However, it missed the analysts’ forecast of 5.2%. For the year to date, November’s retail sales rose from October’s -6.83% to -5.75%. The rise of retail sales in a country that is among the top silver consumers denotes increase in the metal’s demand.
Silver’s prices rally as its appeal as a safe haven rises
Silver prices are also rallying due to the rise in its safe haven appeal. Its value as a precious metal is similar to that of gold. The price of the latter metal has risen by 0.39% to trade at $1839.25. Investors consider both commodities as a hedge against fiat currencies that tend to be unstable.
Today, investors have shifted their focus to precious metals as US market indices trade lower. The Dow Jones is down by 0.62% while S&P 500 has declined by 0.44%. Similarly, the US dollar index dropped by 0.01% to trade at $90.64.
News on the US stimulus package have also contributed to the demand of silver as a store of value. On 14th December, a group of bipartisan US lawmakers presented 2 bills aimed at availing an emergency economic relief. One of the bills includes a $748 billion stimulus package.
As the bipartisan group showed progress, congressional leaders are hopeful about the approval of an economic relief package prior to the Christmas recess.