Silver Price Forecast: XAG/USD hits a 13-year high on increased demand for the industrial metal

• Silver prices rise to 13-year highs as the white metal tests $36.00.
• Demand for Silver as an industrial metal surges despite softer demand for safe havens.
• The Gold/Silver ratio plunges, representing a risk-off tone.

Silver (XAG/USD) is experiencing another day of positive gains, which has pushed prices to $36.00, its highest level since February 2012, providing a firm barrier of resistance. 

Silver benefits from both its safe-haven appeal during times of economic uncertainty and its unique properties, which make it one of the most sought-after industrial metals. 

Both characteristics have underpinned higher Silver prices, which are posting weekly gains of 9% at the time of writing on Friday. 

Silver's industrial appeal shines, lifting prices to 13-year highs

Earlier in the week, Silver prices benefited from escalating US-China trade tensions and a weaker US Dollar, driving demand for precious metals. However, market sentiment shifted on Thursday following a positive call between US President Trump and Chinese President Xi Jinping, which led to a resumption of trade talks between the two nations. The shift in sentiment reduced Silver's safe-haven appeal but increased its demand as an industrial metal.

In addition to improved geopolitical tone, first-quarter Eurozone Gross Domestic Product (GDP) and Retail Sales data came in stronger than expected, helping to lift confidence in the European economic outlook. Meanwhile, better-than-expected employment figures in the US and Canada further boosted optimism around North American growth prospects.

Meanwhile, the Canadian Prime Minister's Office (PMO) confirmed that Prime Minister Mark Carney held discussions with Chinese Premier Li Qiang aimed at strengthening bilateral ties and expanding trade cooperation.

With Friday's developments resulting in lower Gold prices and higher Silver prices, FXStreet data shows the Gold/Silver ratio at 92431, down 1.67% intraday, representing a risk-off tone that is supportive of Silver's industrial demand.