With interest rates negative around the world Silver jumps to a 10 month high.
Silver prices jumped to their highest levels in 10 months during trading in Asia.
The price of silver rose 3 per cent to $16.73 a troy ounce, the highest level since June. It is now trading down at $16.63, writes Henry Sanderson.
Silver prices rallied on the Shanghai Gold Exchange, rising as much as 4.3 per cent to 3,595 yuan per kilogram, according to Reuters.
Silver prices have lagged gold this year, even though traditionally, gold rallies lead to higher silver prices. Prices started to rise at the beginning of last week.
“It’s a combination of silver getting a bit of attention over the past week with the big move in the gold/silver ratio and quite a few market participants looking at silver in and its relative performance to gold and thinking it might be time for a bit of catch up,” Joni Teves, an analyst at UBS, said.
Gold has rallied 17 per cent this year as expectations of a Fed rate hike have been pushed back. It traded up 0.85 per cent at $1,242.75 a troy ounce today.