Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Silver rallies to 11-month highs, gold also climbs

Published 04/21/2016, 06:15 AM
© Reuters.  Silver rallies to 11-month highs, gold also rises
XAU/USD
-
XAG/USD
-
GC
-
HG
-
SI
-

Investing.com - Silver prices rallied to 11-month highs on Thursday and gold rose to one-and-a-half week highs as higher oil prices fed into a stronger tone across commodities.

Silver futures for May delivery were at $17.43 an ounce at 1208 GMT after rising to highs of $17.62 earlier, levels not seen since May 2015.

Gold futures for June delivery were up 0.65% at $1,262.4 an ounce.

Oil prices were near 2016 highs on Thursday after the International Energy Agency said it expects the oil market to rebalance from oversupply by next year.

Global shares rose and the dollar remained firm, but stronger market sentiment failed to undermine the safe have appeal of precious metals.

Silver has now gained 26% this year, compared to gold’s almost 19% rise.

With more than 50% of silver demand coming from industry, prices have been boosted by recent indications that China’s economy is stabilizing after a turbulent start to the year.

Still, gold prices posted their strongest quarterly gains in 30 years in the first quarter of 2016 as global growth concerns and investor uneasiness about negative-interest-rate policies in Japan and Europe bolstered investor appetite for bullion.

Demand for the metal was also underpinned by the view that the Federal Reserve is likely to stick to a cautious approach on future interest rates increases.

Higher U.S. interest rates would boost the greenback by making it more attractive to yield-seeking investors, while weighing on gold by making it more expensive for holders of other currencies.

Investors were looking ahead to a European Central Bank meeting later in the day, at which no fresh policy measures were expected, for any impact on the dollar.

Elsewhere in precious metals trading, copper for May delivery climbed 0.8% to $2.256 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.