Spot Silver rose on Friday and headed for its largest weekly advance since early April amid lingering investor concerns over the US fiscal outlook that drove demand for safe-haven metals.
Yesterday US President Donald Trump’s tax and spending legislation advanced in the House and is expected to move to the Senate. Should the bill pass, it would significantly increase US federal debt, potentially exacerbating existing investor concerns.
According to an estimate by the Congressional Budget Office, the tax bill may cost almost $4 trillion, which added to concerns over long-term fiscal instability.
Moody’s recent downward revision of the US sovereign credit rating reflected such concerns.
Meanwhile, industrial demand for Silver remained strong, especially from the solar energy sector. China’s wind and solar capacity rose to almost 1,500 GW in the first quarter of this year, underpinned by a 60 GW surge in photovoltaic industry, the latest data showed.
Spot Silver was last up 0.55% on the day to trade at $33.23 per troy ounce.
The white metal has gained 2.90% so far this week.
The US Dollar Index has lost 1.50% so far this week. A weaker dollar makes dollar-priced Silver more appealing to international investors holding other currencies.
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