Some profit-taking might've struck the likes of gold yesterday but things are quickly turning back around in trading today. The precious metal is up 0.6% to $3,657 now, with dip buyers coming back in a timely manner. However, the bounce today is being overshadowed by a jump in silver prices for the most part. That is up over 2% and breaking the $45 level for the first time since 2011.
As much as a lot of people are talking about gold, silver - and platinum for that matter - has outperformed gold in terms of gains so far this year. It's been a case of widespread gains in precious metals and its cousins, with copper also now eyeing an upside rebound back towards $5 next.
Circling back to the surging run in silver though, part of it can be tied to its correlation to gold as a "cheaper alternative". However, factors like increasing demand for industrial usage i.e. green transition and batteries, and also supply constraints are also key reasons in underpinning silver prices during this run.
As for gold, dip buyers are stepping back in today in defending the 100-hour moving average (red line) from yesterday. That just reaffirms a more bullish near-term bias still, as the focus now turns to US data later in the day.
