Silver spikes to one-month high as markets eye central banking demand potential

COMEX Silver futures spiked in last session, recording a massive gain of 2.56% as media reports stated that Saudi Central Bank has reportedly made a strategic move by purchasing silver derivatives. The bank holds over half a trillion dollars in assets, and the silver derivative positions account for 1.25% of its portfolio, according to reports. This boosted sentiments are market grew conscious of the allure of Gold for global monetary policy authorities following their massive Gold buying spree in recent years. COMEX Silver futures were also boosted by firm equities and a likely shift in the US interest rate dynamics as the Dow Jones Industrial Average rallied to an all-time high Friday after Federal Reserve Chair Jerome Powell signaled the central bank could begin easing monetary policy next month. The white metal currently quotes at $38.90 per ounce, down 0.40% on the day but is holding near one-month high and is up around 6% for this month.

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