SINGAPORE (Reuters) – Silver and gold were within sight of historic highs on Friday and could resume an uptrend as the U.S. dollar held near three-year lows against a basket of currencies on hopes U.S. monetary policy would stay ultra loose, keeping inflationary price pressures high.
A fresh batch of U.S. economic data in the form of rising claims for jobless benefits failed to rescue the dollar, which had dropped to its weakest level since July 2008 against other currencies before recovering slightly.
Silver barely moved, standing at 48.32 an ounce by 0234 GMT (10:34 p.m. ET on Thursday), having rallied to a record at $49.51 an ounce on Thursday. Gold lost $1.10 to $1,533.85 an ounce after hitting a lifetime high around $1,538 an ounce in the previous session.
“If the dollar continues to weaken, then it’s only likely to boost gold as well as silver as the inverse relationship between the two assets persists. I would say that for gold I am still looking for it to hit $1,600 this year,” said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.