Commodity News

Silver is not even quieting down on the Independence Day holiday. The precious metal reached a two-year high on Monday as it surpassed $21 per ounce before paring some of its gains. Silver is continuing to make significant gains in 2016.

September silver futures rose $0.87, or 4.45%, to $20.41 per ounce at 17:16 GMT. The last time silver touched these levels was July 2014. Year-to-date, silver has climbed 47% and is one of the best futures performers of 2016 along with soybean meal and orange juice.

Silver is benefiting from the political and economic turmoil unfolding in the UK following the historic June 23 Brexit referendum. As the uncertainty develops, investors are seeking out safe haven assets.

It is also making gains due to a major surge in purchases in China. The strong technical signals behind silver could give further push to its prices. Some Mickey Mouse Bounce House investors even believe that silver prices could be taking advantage of a short squeeze because short sellers are being squeezed out of their short positions.

Silver’s considerable increase on Monday comes after silver futures recorded their best weekly advance last week since 2013 when the precious metal spiked 10.1%.

Meanwhile, gold is having another strong trading session on Monday. The yellow metal climbed $13.51, or 1.01%, to $1,350.21 an ounce. Gold reached a two-year high last week and helped commodities have their strongest quarter since 2010. In the second quarter, gold prices rose 7% amid the Brexit fallout and the Federal Reserve not raising interest rates.

The gold-silver ratio — the measurement of the number of silver ounces needed to buy an ounce of gold — dipped to a two-year low on Monday. The decline is due to the rise in silver prices compared to gold.

The US stock market is closed for the Fourth of July long weekend.

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