It took only 10 minutes to send gold and silver prices soaring

(Bloomberg) — Gold and silver are finally getting the haven-demand boost that trade wars and Brexit couldn’t provide.

In the 10 minutes ended 8:50 a.m. in New York, December gold contracts equal to almost 1.57 million ounces traded on Comex — almost 12 times the 100-day average volume for that time of day. The spike in trading pushed up prices for the metal that had been trading little changed earlier. In the case of silver futures, contracts representing more than 36 million ounces traded at 9:30 a.m., erasing earlier losses.

“This is a gold move and silver is catching up,” Tai Wong, the head of base and precious metals trading at BMO Capital Markets, said in telephone interview from New York. The trading activity "suggests that an investor is making a significant allocation in gold at the beginning of the month."

Money managers are giving precious metals a second look as the European Commission warned of a Greek-style crisis in Italy after Finance Minister Giovanni Tria’s effort to promote his government’s new fiscal strategy ended in failure on Monday. That’s given gold and silver a boost, Wong said.

Gold futures for December delivery advanced 1.5 percent to $1,210.10 an ounce by 10:30 a.m., set for the biggest gain for a most-active contract since Aug. 24. Silver futures climbed as much as 3.1 percent to $14.95 an ounce, the highest since Aug. 28.

(By Marvin G. Perez)