Silver futures finished on the bullish zone on Monday session as prices of the precious metal won huge gains on investors’ reaction to Emmanuel Macron’s emphatic victory in the French national elections.
Silver prices finally rebounded from past week’s losses as the silver futures contract for July delivery tacked on 11 cents, on a 0.7% climb, to settle up at $16.38 per troy ounce. Last week it has touched a level of $16.26 and for the past three weeks, the grey metal has given up over 11%.
The win of EU-centrist and former economic minister Macron was believed to favor market as he promised to remain the door open foreign investors. Surprisingly, precious metals were in the positive territory yesterday despite a surge on US dollar, which has an inverse relationship on both silver and gold.
The US dollar index chipped in 0.3% climb against basket of six major rivals to finish at 98.90 as the Macron’s sweep of bitter rival Marine Le Pen sent big boost to developed markets such as the US and Europe. The euro, which has been on the radar since the start of French elections, also gained ground.
Gold prices also pulled off an impressive performance as gold futures for June delivery, the most active contract, added $5.60, or 0.6%, to close at $1 233.50.
The hard commodities have been a recipient of strong downward pressure lately as equity markets continued their upward trends.