We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 22 Jul 2020 08:43 AM

Font Size

- Aa +

Silver jumps to seven-year high, gold near record in flight to havens

Investors have flocked to the precious metals on surging demand for havens amid a resurgence in virus cases, slowing growth and negative real interest rates in the US

Silver jumps to seven-year high, gold near record in flight to havens

Silver, used in manufactured products ranging from solar panels to electronics, is getting an added boost from supply concerns and bets on a rebound in industrial demand.

Silver jumped to the highest in almost seven years and gold continued its march toward a record on expectations more stimulus is needed to help the global economy recover from the coronavirus pandemic.

Investors have flocked to the precious metals on surging demand for havens amid a resurgence in virus cases, slowing growth and negative real interest rates in the US. After the success of a European rescue package this week, focus turns to negotiations between Republicans and Democrats on legislation to prop up the hobbled American economy.

Holdings in exchange-traded funds backed by the metals are at an all-time high. Silver, used in manufactured products ranging from solar panels to electronics, is getting an added boost from supply concerns and bets on a rebound in industrial demand.

“Like gold, silver has benefited this year from safe haven demand and falling long term U.S. real yields,” Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note. “A sustained rally in silver can continue, particularly when demand hopes and supply concerns are added to the mix.”

Spot silver climbed as much as 7.2% to $22.8366 an ounce, the highest since 2013, and traded at $22.6078 at 9:17 a.m. in Singapore. Futures on the Comex jumped as much as 7.6%.

Gold for immediate delivery rose as much as 1.3% to $1,865.81 an ounce, the highest since September 2011, and closing in on the all-time high of $1,921.17 set that year.

“Silver is surging, and we think it is likely to remain strong,” James Steel, chief precious metals analyst at HSBC Securities (USA) Inc., said in a note. “Some investors who may not have participated fully in the gold rally could find silver attractive. We believe this is happening and may sustain silver at higher prices still.”

Arabian Business: why we're going behind a paywall