By Barani Krishnan
Investing.com - Gold prices rose for a second day in a row on the back of a weaker dollar but the yellow metal’s gains were outpaced by that of silver, which posted its biggest two-day run-up since July 2021.
Often called the “poorer cousin of gold”, silver has far-ranging industrial uses compared to gold’s largely ornamental and financial hedging applications. Silver has come into its own this week on the back of demand for electronic circuitry and so-called “green energy” applications.
U.S. gold futures’ most active contract, December, settled at $1,784.90 per ounce on New York’s Comex, up $14.40, or 0.8%. In the previous session, it rose 0.3%, accounting for a 1.1% rise in total since Monday’s close and for the largest two-day gain in a week.
December silver futures on Comex, however, rose 5.1% in the same period, gaining 56.20 cents and 51.90 cents respectively on Wednesday and Tuesday for a latest settlement of $24.45.
“Silver is getting attention from the green energy crowd as well as it's used in solar panel production,” analyst Adam Button said in a post on ForexLive.
But silver also needs to stage a meaningful retracement from the $21.60 low registered during the third quarter of 2020, said Button. “The long-term range isn't done yet. It will need to get above $25 to get some real momentum going.”
Gold’s rebound came after the Dollar Index, pegged against six major currencies led by the euro, fell by a combined 0.4% over two days.