Silver futures have hit a two-month high, propped up by hopes for stronger demand after a recent slate of mostly upbeat global economic data.
Silver for September delivery, the most actively traded contract, on Wednesday rose 44.4 US cents, or 2.1 per cent, to settle at $US21.787 a troy ounce on the Comex division of the New York Mercantile Exchange.
Silver futures have surged 12 per cent in five trading days as brighter economic reports pushed investors who had bet on lower prices to close out those bets.
About 40 per cent of silver consumption comes from products such as circuit boards and solar panels. As a result, silver prices can track economic-growth expectations.
"The key trigger was last week when we had the export sales data from China," said Mike McGlone, a director of research with ETF Securities.
The data, which showed strong gains in imports and exports, showed "overall economic prospects for China improved," McGlone said.
On Wednesday, data showed the eurozone economy returned to growth during the second quarter of the year, following a year and a half of contraction.
The European Union's official statistics agency said the combined gross domestic product of the currency area's 17 members was 0.3 per cent higher than the prior three-month period. Economists had expected an expansion of 0.2 per cent.
Gold for December delivery rose $US12.90, or one per cent, to settle at $US1,333.40 a troy ounce.
Settlements (ranges include open-outcry and electronic trading):
London PM Gold Fix: $1,326.50; previous PM $1,328.50
Dec gold $1,333.40, up $12.90; Range $1,315.10-$1,334.90
Sep silver $21.787, up 44.4 cents; Range $21.265-$21.825
Oct platinum $1,505.20, up $5.50; Range $1,485.50-$1,506.40
Sep palladium $740.35, up $1.45; Range $733.50-$741.00
