Silver Prices Notch Fresh 12-Week Highs as Dollar-Plunge Continues

The greenback later recovered, however, as USA equities rose on Tuesday and the US 10-year Treasury yield pulled up from 9-month lows. It rose 29.09 points, or 0.13 percent, to 21,837.49 as of 1830 GMT. Prices surged almost 3% on Monday and are up 3.4% over the past three days.

“Markets have made the judgment that the post-missile test reactions of the US, the United Nations and North Korea do not warrant a move to full “risk off” mode in stock markets at this stage”, said Ric Spooner, chief market analyst at CMC Markets, in a commentary.

“This may have been interpreted by investors as a sign that the USA will approach the situation in a more measured and diplomatic manner, as opposed to raining down “fire and fury”.

Following gold, silver ready dropped by Rs 500 to Rs 40,600 per kg and weekly-based delivery by Rs 300 to Rs 39,600 per kg. Despite being Pyongyang’s physical target and Japan’s geographical proximity to the Korean peninsula, the yen’s safe-haven appeal drove USD/JPY to a 4-month low of 108.26 during the European session, briefly breaching support at 109.08 that has contained the downside in the dollar since November.

“We’ve certainly remained pretty cautious on the outlook for risk here, and definitely not buying fully into the discounting of the North Korean tensions”, he said.

North Korean leader Kim Jong Un guided a launch of an intermediate-range ballistic missile on Tuesday in a drill to counter the joint military exercises by South Korean and USA militaries, the North’s official KCNA news agency said on Wednesday. Gasoline advanced for a sixth day as Tropical Storm Harvey picked up strength again.

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