Silver hits 13-year high on technical breakout

Bloomberg reports that silver has hit a 13-year high, driven by a technical breakout. This rise signals increasing investor interest in precious metals deployed in the industrial sector. 

On Thursday, silver gained 4.5% and reached $36.06 per ounce, the highest since February 2012. On Friday, prices are holding close to this peak, Bloomberg says. 

Nicky Shiels, head of metals strategy at MKS PAMP SA, says this surge in silver prices was fueled by technical momentum across the metals complex and improving fundamentals. Additionally, high demand for physical silver in India reinforced the rally. 

Although silver, up 19% in the 12 months through Thursday, is lagging behind more expensive precious metals, it is widely used in the industrial sector, especially in solar panel manufacturing. At the same time, the silver market is still facing a deficit this year, Bloomberg reports. 

Nicky Shiels believes that silver holding higher than $35 is an inflection point. Prices above this mark could revive retail interest.