Silver prices powered up to a two-week high on Tuesday, moving in tandem with gold prices which rallied to a new all-time high.
Silver prices rose as high as $26.14 an ounce on Tuesday afternoon, up from around $25.20 an ounce in late deals on Monday.
Silver followed in the wake of gold, which once again stole the limelight on Tuesday as prices hit a new all-time high of $2,277 an ounce.
The precious metals complex in general took support from a fall in the value of the US dollar, which saw initial strength go into reverse on Tuesday. A weaker dollar makes gold and silver cheaper for buyers in other currencies, driving increased interest.
Both metals also took support from heightened geopolitical tensions after a military strike against an Iranian consulate in Damascus on Monday which killed several people. In a separate incident, Ukraine claimed responsibility for a drone attack deep inside Russia’s Tatarstan region on Tuesday which targeted a drone factory and the country’s third largest refinery. Increased hostilities tend to drive investments into lower-risk assets like precious metals.
Looking ahead, Wednesday will see the monthly US ISM Services PMI data for the latest snapshot on the health of the US economy, while a planned speech by US Fed chair Jerome Powell will be closely watched for any signals on the trajectory for monetary policy in the near future.
Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.
Read our Editorial Guidelines here.
