Investing.com - Silver prices rallied to the highest level in 10 months on Tuesday, boosted by the softer dollar and signs of stabilization in China, while gold also rose, tracking gains in silver.
Silver futures for May delivery jumped 3.0% to $16.73 an ounce by 0935 GMT, the most since June 2015.
Gold futures for June delivery were up 0.72% at $1,243.9 an ounce.
Silver has now gained 21% this year, compared to gold’s 17% rise.
With more than 50% of silver demand coming from industry, prices have been boosted by recent indications that China’s economy is stabilizing after a turbulent start to the year.
The greenback weakened against the other major currencies on Tuesday as a recovery in oil prices boosted the currencies of commodity exporting nations.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.13% to 94.33.
Oil prices rose as a strike by oil workers in Kuwait slashed the country’s output levels and overshadowed a deadlock between Iran and Saudi Arabia on a mooted production freeze intended to prop up prices.
The recovery in oil prices helped drive global equities higher, with European stocks hitting three month highs.
The outlook for future U.S. interest rate increases remained clouded after Boston Fed President Eric Rosengren warned Monday that rates could increase more rapidly than investors currently expect.
Separately, New York Fed President William Dudley warned that the U.S. central bank is likely to stick to a cautious approach on tightening monetary policy.
An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors, while weighing on gold by making it more expensive for holders of other currencies.
Among other precious metals, copper for May delivery fell 0.62% to $2.151 a pound.