Silver prices advanced to more than one-week highs Tuesday, helped by a weaker US currency.
December silver futures were on track for the highest settlement since October 10, advancing 17 cents, or 1%, to $17.64 a troy ounce. The futures price traded within a daily range of $17.46 and $17.71.
The grey metal is still hovering in oversold territory on the Relative Strength Index following a week of lateral moves. Silver has plunged more than 10% since the conclusion of the September 20-21 Federal Open Market Committee (FOMC) meeting.
Gold prices also traded higher Tuesday morning. The December futures price advanced $5.90, or 0.5%, to $1,262.50 a troy ounce.
Precious metals were supported by a softer US dollar, which declined for a second consecutive day against a basket of other major currencies. The dollar index fell as much as 0.3% through the overnight session. It was last down 0.1% at 97.76.
Reuters reported on Tuesday that Deutsche Bank AG has agreed to pay a $38 million settlement for illegally conspiring to fix silver prices at the expense of traders. The embattled bank also faces a $14 billion fine for its role in mis-selling mortgage-backed securities during the US housing bubble.
In economic data, UK consumer inflation rose more than expected in September, reaching its highest level in 22 months. The consumer price index rose 0.2% from August and was up 1% from a year ago. The Bank of England (BOE) recently stated that it expects inflation to continue higher given the large depreciation in the British pound.
Meanwhile, European stocks traded sharply higher Tuesday, as markets awaited fresh batches of corporate earnings reports. The pan-European Stoxx 600 was up more than 1%. All of Europe’s major indexes were trading sharply higher.
US equity futures were also trading firmly to the upside in pre-market activity, pointing to a solid start to the day. Futures on the blue-chip Dow Jones Industrial Average were up 85 points. S&P 500 Index futures also advanced 11.75 points.