Gold and silver trade higher
Gold and silver were trading higher on Tuesday. Silver hit an 11-month high. At 3:21 EST, gold was trading at $1,253 per ounce, a gain of 1.5%, while silver was trading at $16.98 per ounce, a gain of 4.4%.
What made silver explode?
Silver prices got some momentum on Tuesday because of the weaker dollar and increased volatility, which raised demand for these safe haven assets. Weak US housing data raised doubts about the economy’s strength and pulled the dollar lower on Tuesday. The weaker dollar supports dollar-denominated commodities like precious metals. Plus, positive sentiment surrounding the Chinese economy also supported silver prices, considering that China is one of the top precious metal consumers.
Silver lifted gold on Tuesday
The surge in silver prices also supported gold prices on Tuesday. Plus, recent comments from Fed officials gained some attention. These factors have supported precious metal prices since Monday’s overnight trading hours. For further reading on copper, gold, and silver overnight prices, please refer to Why Copper Slipped as Gold and Silver Inched Up This Morning.
The gains in silver and gold supported precious metal producers and related ETFs. At 2:33 PM EST, Barrick Gold (ABX), Newmont Mining (NEM), Royal Gold (RGLD), and Harmony Gold (HMY) were trading 4.1%, 4.9%, 4.5%, and 2.5% higher than Monday’s close. The iShares Silver Trust (SLV) and the SPDR Gold Trust (GLD) were trading 4.5% and 1.7% higher, respectively, at 2:38.