Silver prices continued higher on Tuesday, reaching fresh 12-week highs as the dollar extended its downward spiral.
December silver futures rose 11 cents, or 0.6%, to $17.64 a troy ounce at 7:42 a.m. ET. The grey metal rose by as much as 1.1% earlier in the day.
With the gain, silver is trading at its highest level since June 6. Prices surged nearly 3% on Monday and are up 3.4% over the past three days.
Gold prices also extended their winning streak, climbing to their highest level in nearly a year. The December futures contract rose $10.80, or 0.8%, to $1,326.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
Precious metals have been supported by renewed volatility in the U.S. dollar after a meeting of central bankers last week provided scant details about the future of monetary policy. Federal Reserve Chair Janet Yellen defended Obama-era regulatory policies in her speech at Jackson Hole on Friday, but didn’t get into details about how monetary policy would play out.
The U.S. dollar index (DXY) fell 0.5% on Tuesday to reach 91.78, its lowest since January 2015. The DXY basket is down 1.6% over the past three days.
Tensions on the Korean peninsula drove equity markets lower on Tuesday, with European stocks plunging more than 1%. The pan-European Stoxx 600 was down 1.3% during the midday. Germany’s DAX fell 1.7% and the U.K.’s FTSE 100 was down 1.1%.
U.S. stock futures were firmly in the red, pointing to a volatile start to Tuesday trading. Dow Jones futures were down 100 points at 7:47 a.m. ET. Wall Street had opened the week on steady ground, with the Dow virtually breaking even during the Monday session.
Comex Silver Futures (December 2017)