Silver Prices Best Performing Precious Metal Today
Silver prices jumped on Monday on declines in the U.S. dollar and bets the Federal Reserve will be cautious when increasing interest rates.
The silver price for May delivery gained 3.9% to $15.98 a troy ounce on the Comex division of the New York Mercantile Exchange. The contract logged its highest settlement price since March 17.
Silver was the best performing metal today, followed by platinum (2.2%), gold (1.1%), and palladium (1.1%).
The iShares Silver Trust ETF (NYSEARCA:SLV) rose to $15.20.
Gold prices, meanwhile, rose as much as 1.3% before finishing at $1,258 a troy ounce, up 1.1%.
On Friday, New York Fed President William Dudley said the central bank must take a dovish approach to further rate hikes because of prolonged external risks to the U.S. economy, despite some strength at home and positive hints of inflation.
The Fed’s dovish tone on interest rates has erased this year’s losses in U.S. stock markets, weakened the dollar and pushed up the Japanese yen, regarded as a safe haven.
Dollar Hits Fresh 17-Month Low Versus Yen
The U.S. dollar index, which compares the greenback to a basket of currencies, fell 0.5% to 93.75, near its 93.50 bottom touched on August 24.
The Japanese currency further strengthened on Monday to 107.63 yen versus the greenback, a fresh 17-month high.
While the U.S. Dollar index is down 4.9% this year, the Brazilian real has appreciated 16%, the Russian ruble has strengthened 12%, while the Japanese yen and the Canadian dollar are up 11% and 7% respectively.
A weaker dollar makes assets priced in the currency more attractive to investors using other currencies.
Silver mining stocks also got a boost from the higher price of the gray metal. First Majestic Silver Corp (NYSE:AG) added 8.6% to $7.56, stretching this year’s rally to 128%.
Silver Wheaton Corp. (NYSE:SLW) rose 5% to $17.35, expanding 2016 rally to 40%.
Since the beginning of the year, silver prices have gained 15.3%, compared with an 18.7% gain for gold.