Silver extends rally, gold tags along as stocks sink

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05-Jul (MarketWatch) — Silver traded at two-year highs Tuesday, maintaining its status as the standout among metals as lingering post-Brexit economic uncertainty underpinned the relative safety of haven investments, including silver and gold.

September silver gained 17 cents, or 0.8%, to $19.75 an ounce. It earlier pushed above $21 an ounce on an intraday basis for the first time since July 21, 2014.

At least one analyst questioned if silver’s move had come too far, too fast, and was possibly driven by unusual factors, including thin volume surrounding the U.S. Independence Day holiday. U.S. markets were closed Monday.

“The metals may be taking a breather before the next leg, but I remain skeptical, especially on silver,” said Peter Hug, Kitco Metals global trading director, in a blog post. “It appears that the $3 move on silver from the $18.50 level last Thursday to $21.20 over the weekend was likely a large commercial that decided or was forced to cover a short position…”

…Gold and silver pushed higher after comments Tuesday from Bank of England Governor Mark Carney. He said the U.K. is facing a “period of uncertainty and economic adjustment.” He justified the measures the central bank has taken to support the economy, though warned that they will not “fully and immediately” be able to offset market and economic volatility.

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