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(Kitco News) – Moving forward on gold, silver is now in the spotlight as prices rise more than g% on Tuesday, surpassing $ 21 an ounce to its highest level in six years, according to Commerzbank analysts.
In a report on Tuesday, analysts noted that silver has seen an impressive rebound since it hit an 11-year low in March due to market volatility caused by the COVID-19 pandemic. They noted that prices rose more than 70% from their low. September silver futures last traded at $ 21.44 an ounce.
“Therefore, silver has significantly outperformed gold as the latter has risen 24% compared to its March low, “analysts said.” As with gold, the rebound in silver has been boosted. almost exclusively due to strong investment demand. ”
The silver market is also on track to outperform gold for the year. With its last rally, silver prices have risen 26% so far this year. Meanwhile, gold prices rose 21% on the year; August gold futures last traded at $ 1,841 an ounce, its highest level in nine years.
Commerzbank analysts said speculative interest in the precious metal will continue to drive silver prices.
“According to CFTC statistics, they had already expanded their net long positions to a maximum of five months in the last reporting week. They are likely to be even higher now, ”analysts said.
The silver recovery has brought the gold-silver ratio to its lowest level since March. The relationship on Kitco.com was last traded at 87.29 points.
Commerzbank added that an unprecedented lax monetary policy worldwide will continue to support gold and silver prices.
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