Spot silver climbed 4.0% to $75.85 an ounce on Tuesday as commodity-linked currencies like the Australian and New Zealand dollars rallied against a weaker US dollar.
The move in silver was pronounced, with New York silver futures rising 5.5% to $75.98 an ounce, according to COMEX data.
In the foreign exchange market, both the Australian dollar and the New Zealand dollar gained 1% against the US dollar, reflecting the broad-based 'risk-on' mood.
The concurrent rally in precious metals and commodity currencies suggests a flight from the US dollar amid expectations of rising inflation, putting the focus on upcoming economic data for further direction.
The rally reflects a significant shift in investor sentiment, favoring hard assets and currencies from commodity-exporting nations over the greenback. This trend, if it continues, could signal a more sustained period of US dollar weakness and provide further tailwinds for the raw materials sector. The gains in the Australian and New Zealand dollars are tightly linked to the performance of commodities, as both economies are major exporters.
This article is for informational purposes only and does not constitute investment advice.
