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| Above, Morgan and Peace silver dollars. Photo by Armand Vaquer. |
Some reports of the near 4% rise in silver's spot price yesterday said that it pulled up gold's price. It sounded as if silver acted like "coattails" for gold.
Silver is still over $24/toz today, although it settled down a bit. We'll see how things go as the trading day progresses.
According to Kitco News, the surge in silver was attributed to:
(Kitco News) - Gold and silver prices are solidly up in midday U.S. trading Wednesday, boosted by a weaker U.S. dollar index and a dip in U.S. Treasury yields at mid-week. More short covering by the futures traders and perceived bargain hunting are featured in the two precious metals. The technical posture for silver has significantly improved this week, which is inviting chart-based speculators to the long side of that market. December gold was last up $20.60 at $1,946.60 and September silver was up $0.91 at $24.36.
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Traders and investors are anxiously awaiting the Kansas City Federal Reserve’s annual symposium held in Jackson Hole, Wyoming late this week. Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde are set to give speeches. The speeches are expected to provide insights into the future monetary policy direction of their respective central banks. The ECB is expected to pause its recent tightening cycle at its September meeting, while U.S interest rates are expected by most to remain elevated for an extended period due to still-significant upward inflationary pressures. The marketplace will be listening closely for a potential shift in the Fed’s inflation goal. An upward revision to the Fed’s present target of around 2% annual inflation could have major implications for the U.S. bond market, particularly longer-dated U.S. Treasuries, likely increasing Treasury yields which are already at the highest levels since 2007.
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