Silver leads commodity gainers as sentiment improves

Silver posted the strongest gain of any commodity last week after investors became more confident that the US would leave stimulatory monetary policy in place for the near future.

Data from ETF Securities show the price of silver rose 4.4 per cent in the week ending 25 October, making it the strongest performing commodity of the week. The grey metal is up 5.7 per cent over the past month but is down 24.3 per cent over 2013 so far.

Gold and platinum prices both rose 1.9 per cent last week, while palladium gained 3.6 per cent. The metals benefited from the view that the US Federal Reserve is unlikely to slow the pace of its $85bn-a-month bond-buying programme any time soon.

ETF Securities says: “Precious metals rose across the board last week after lower than expected US non-farm payroll numbers reignited hopes of a delay in the Fed tapering.

“With the US economy already weighed down by a potential slowdown in growth due to the federal shutdown, investors are increasingly expecting stimulus to remain in place for longer.

“Silver was the best performing commodity last week as its hybrid characteristics makes it well positioned to benefit from a pick-up in global manufacturing activity.”

In terms of inflows, ETF Securities’ silver products were the second most popular last week after taking $5.7m in new money. Natural gas ETFs were the most popular, with inflows of $8bn.