Silver led gainers for the second week. With its strong correlation to gold and wide industrial usage, investors are becoming more optimistic on silver, said ETF Securities.
Evidenced by the latest PMI data, global manufacturing activity is rising, industrial demand for the metal is also looking more po sitive and another supply deficit this year will help tighten the market further.
Silver volatility is just recovering from the lowest levels reached in over a decade, indicating a strong foundation for an extended recovery .
The August 2013 high, just above $24an ounce, is a good area to expect good resistance. The gold vs silver ratio has backed away from near the 70 area and appears poised to revisit near 50.