Silver has surged another 1.55% today. Overnight, silver futures in Shanghai surged by 6% – the daily exchange limit. Silver for June delivery in Shanghai climbed to 4,440 yuan/kg, highest price for a most active contract since October 31.
In London, silver surged another 2.3% today to $21.99/oz prior to giving up some of those gains. Silver headed for the longest run of gains since at least 1968 according to Bloomberg. It is now up 11.3% year to date and is, as expected, again outperforming gold.
Buying in China picked up from Friday’s levels. Premiums for 99.99% purity gold on the Shanghai Gold Exchange rose to about $7 from $5.50 on Friday though volumes were slightly lower.
Gold bullion for immediate delivery rose 0.5% to $1,324.03/oz and gold in Singapore traded as high as $1,330.02, the highest since October 31. Prices climbed 4.1% last week, the biggest increase since the period ended August 16.
Gold climbed $16.90 or 1.3% Friday to $1,318.60/oz. Silver rose $0.94 or 4.58% at $21.55/oz. Gold and silver were both up for the week at 4.06% and 7.09%. The precious metals continued their strong recent performance as the dollar came under pressure. The dollar fell to its weakest level in a year after the recent poor U.S. economic data. Precious metals saw strong gains as prices moved up through key technical and psychological levels such as $1,300 on gold and $20.50 on silver.
Gold has rebounded 10% so far in 2014 amid expanding demand for coins and bars as signs of faltering U.S. growth lead to safe haven demand. U.S. factory output unexpectedly fell in January by the most since May 2009, Federal Reserve figures showed on Friday. Recent retail sales and employment data were also poor.