Silver prices rose in European trade on Friday, extending gains for the second day off two-week lows amid short-covering.

Demand is expected to improve on precious metals amid the New Lunar Year holiday, while Chinese authorities take new measures this week to boost the economy and underpin demand.

Silver Prices Today

Silver prices rose 0.6% to $22.72 an ounce, after rising 1.65% on Thursday, the second profit in three days away from a two-week trough at $22.15.

Chinese Demand

The new lunar year in China starts tomorrow, February 10, and continues for 15 days, and is expected to be a year filled with “positive energy” according to Chinese astrology.

During the festivals, demand usually spikes on jewelry of all kinds, with people exchanging gifts and wearing new jewelry items as part of the traditions.

It’s now expected that the new year in China will witness one of the biggest spikes on precious metals and jewelry so far.

Additionally, Chinese authorities starting taking new stimulus measures to boost economic activities in the country, which is expected to boost demand on industrial metals as well.

Silver Institute

The Washington-based Silver Institute said in its latest report that 2024 will be a “fantastic year” for the white metal, with prices potentially rising to 10-year highs.

The institute expects silver demand to hit 1.2 billion ounces in 2024, the second highest on record.

The non-profit organization said that strong industrial activities will drive demand on silver, as manufacturing scales up worldwide this year.