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Silver extended its hot run on Monday, gaining another 2% to approach the $37-an-ounce level, as it continues to benefit from a weakening dollar and other market tailwinds.
Last week, the precious metal broke past the $36 price level, reaching its highest since February 2012.
Spot silver rose 2.2% to $36.76 an ounce at Monday’s close, after touching $36.90 earlier for a new 13-year high. Silver futures also shot up 2.1% to $36.91 per ounce in New York.
Meanwhile, its more expensive, less volatile sister metal gold ended the day 0.5% higher at $3,328.22 per ounce, as market participants still await the outcomes of the US-China trade talks.
With these moves, silver has now matched gold in year-to-date gains at nearly 26%, making it one of the best-performing assets that has flown under the radar.
According to Brett Elliott, director of content at precious metals marketplace APMEX, silver still “has room to run higher, with many analysts predicting $40 per ounce by end of year.”
“This is roughly a 20% gain from current levels, which would be an excellent return if price action follows the expected path,” he told CBS last week.
The next catalyst, as Elliott predicts, could be the upcoming Federal Reserve meeting, which may signal the US central bank’s monetary policy path for the rest of this year. A lower US interest rate would bode well for gold and silver, as these metals are considered safe havens but yield no interest.