Silver underperforms gold, pushing gold-to-silver ratio higher
Silver prices rose by less than those of gold on July 11, as precious metals buyers were impacted by a slightly weaker dollar.
Although the greenback had declined slightly, it was still lingering around its highest point in two years against the euro, according to Reuters.
The uncertainty that surrounds the possible use of further quantitative easing by the Federal Reserve is putting upward pressure on the U.S. dollar, Reuters reports.
Silver was 0.7 percent higher at $27.00 per ounce at 12:20 GMT, according to Reuters. At the time, U.S. gold futures were valued at $1,576.00 an ounce and spot gold was 0.5 percent higher at $1,575.54 an ounce. These price movements caused the gold-to-silver ratio to rise to 58.3, after dropping to a six-month low of 48.0 in February.
"Silver remains above the key support zone of $26.40/26.08 … Like gold, it will have to break above the resistance line developing since March at [$]28.00/28.20 to spark a sustained rally," Societe Generale technical analyst Stephanie Aymes wrote in a note, the media outlet reports.
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