- The silver market has given up nearly half its gains made earlier this month as the precious metal sees no benefits from improving economic activity in the U.S. that is helping to ease recession fears.
Analysts also note that renewed strength in the U.S. dollar is also weighing on silver prices ahead of the weekend. The greenback saw a strong move against the euro Thursday after European Central Bank President Christine Lagarde struck a more dovish-than-expected tone after raising European interest rates by 25 basis points.
John LaForge, head of real asset strategy for Wells Fargo Investment Institute, said that silver's reaction to the U.S. dollar shows that silver's fortunes remain tied to gold. He added that despite robust industrial demand, investors are not ready to see silver as an industrial metal.