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By Melissa Pistilli-Exclusive to Silver Investing News

The price of silver traded back above $13 an ounce for the first time in more than a week on Monday, climbing 4.4 per cent to outperform gold  (1.74 per cent). Silver is riding gold’s rally ahead of key economic indicator reports including details of the U.S. government’s stress test on 19 of its largest banks and Friday’s unemployment numbers. Silver prices are also gaining support from a rebounding commodities market and a depressed greenback.

Precious metals prices “are in a neutral to bullish zone,” said Chintan Karnani of Insignia Consultants. “The positive thing is that they are holding to their key medium term supports of $858 and $1226. As long as these supports hold on daily closing basis downside will be limited in them.”

Despite rising optimism over the past few weeks, investors are still moving into safe haven assets, according to Carlos Sanchez, associate director of research for CPM Group.  ”There has been some increased optimism over the last couple of weeks, [but] it looks like this week may point to … pessimism,” said Sanchez.

Swine Flu: Impact on Mexico’s Silver Miners

No matter how overdone you think the news media’s reports on the Mexican swine flu have become, there’s no denying the impact the fear of the flu is having on business, even in the mining sector. Several miners, including silver mining companies, are complying with a recent decree from Mexican President Felipe Calderon that ordered all non-essential government offices and private businesses to shut down operations until May 6. The order is intended to help curtail the spread of the virus.

Despite experiencing no reported cases of the influenza virus, Pan American Silver Corp. [TSX: PAA] [NASDAQ: PAAS], New Gold Inc. [TSX:NGD] and Endeavour Silver Corp. [TSX: EDR] recently announced that they have temporarily suspended their activities in accordance with the decree.

Pan American ceased operations at its La Colorada and Alamo Dorado mines. The suspension is not expected to affect the annual production forecast and the silver miner says it is still on target to produce 21.5 million ounces of silver this year.

New Gold Inc. has ceased production at its Cerro San Pedro gold and silver mine. Vancouver-based Endeavour has also halted work at two of its operations in Mexico. Each miner remains confident the shutdowns won’t affect their annual production forecasts.

ECU Silver Mining Inc. [TSX: ECU], whose operations are located near Velardena and Vista Hermosa in Durango, has reported that although management is “very sensitive to the potential impact that the swine flu could have to ECU Silver’s operations,” activities “are currently continuing at a normal rate and the Company is generating more dore bars on a weekly basis.”

On Monday, shares of Pan American Silver on the TSX were trading at $20.80, down from a 52-week high of $37.15.

Shares of New Gold on the TSX were trading at $2.27, down from a 52-week high of $9.75.

Shares of Endeavour Silver on the TSX were trading at $1.66, down from a 52-week high of $3.60.

Shares of ECU Silver on the TSX were trading at .66, down from a 52-week high of $1.95.

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