Silver streaks to highest level in two years

Silver streaks to highest level in two years

Silver streaks to highest level in two years

Written by Staff Writer

05 Jul, 2016 | 7:53 am

The price of silver surged to a two-year high on Monday as buyers in China made bold bets in the futures market and scooped up vast volumes of physical metal.

The price has gone into overdrive since the Brexit vote with investors betting central banks will be called upon to provide yet further stimulus.

Spot silver rose by as much as 7% in US trading to above $21 an ounce. It has risen 11.5% in the past three days.

Gold added more than 1% to settle at $1,350.79, a two-year high.

However after having 2 weeks of strong moves higher, silver prices are at risk of a meaningful pull back. On a more bearish note, a previous fourth wave is the July 2014 high of $21.60. Though future gains are possible, one has to consider the possibility of the shorter term trend consolidating from near current levels.

Silver and gold are regarded by many as a good hedge against inflation.

Since the UK Brexit vote, silver has risen 18 per cent while gold is up 6.6 per cent.

 

 

 

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