Silver prices snapped back in a hurry Wednesday, as a weaker dollar provided a catalyst for precious metals.
Silver for September delivery climbed 21 cents, or 1.3%, to $16.86 a troy ounce at 7:26 a.m. ET. Prices fluctuated between $16.68 and $16.87 through the overnight session.
Gold prices also advanced Wednesday, with the August futures contract gaining $6.90, or 0.6%, to $1,253.80. Bullion is in the process of recovering from a sharp pullback at the start of the week.
The gold/silver ratio that is used by investors to determine when to buy and sell precious metals closed at 75.19 on Tuesday. The ratio essentially states that one ounce of gold is worth 75.19 ounces of silver. The ratio was as high as 76.03 last week.
The U.S. dollar plunged more than 1% on Tuesday amid broad gains in the euro and pound. Disappointing data releases earlier in the week also signaled that the U.S. economy failed to break out of its low-growth conundrum in the first half of the year.
The dollar index was down 0.2% at 96.20 through the early morning session.
For many, a slowing U.S. economy could compromise the Federal Reserve’s plans to raise interest rates, which has direct implications on the dollar.
On Tuesday, the International Monetary downgraded its outlook for U.S. economic growth, citing uncertainty over President Donald Trump’s policies.
The Commerce Department will release its third and final estimate of first quarter GDP on Thursday. One day later, the same department will issue the latest personal income and outlays report.
Comex Silver Futures (September 2017)