Silver may track Gold despite industrial demand

UNITED STATES June 07 2016 11:18 PM     

NEW YORK (Scrap Register): Citi Research said that  industrial demand is unlikely to provide a silver lining for silver, with the  metal eventually weakening whenever gold does.

Silver is a  pseudo-industrial metal with many applications from photography to photovoltaic;  still, the rolling 30-day correlation to gold remains high at 0.85, the bank  added. 

“As such, we note structural trends have a limited influence on  market prices and suggest a combination of weakening gold prices as well as  improved supply -- including scrap -- would point to silver prices averaging  just over $15 an ounce in 2017, down from this year’s average of $16.20 an  ounce.”

Citi issued an upbeat report on gold for the second half of the  year on Monday, but nevertheless said it looks for gold sentiment to eventually  soften by year-end