The silver price surged almost 9% on Monday as improving sentiment drove the metal price to a six-week high.
December silver prices were trading at $20.48 an ounce Monday afternoon, up 7.57% on the day.
[Click here for an interactive chart of silver prices]
Gold also extended its rally, supported by a continued decline in Treasury yields.
Investors remained jittery about the impact of aggressive interest-rate hikes after a slew of Federal Reserve officials last week re-emphasized their resolve to fight inflation. This is despite weak US manufacturing data signaling that the US central bank may not overtighten monetary policy.
“Clearly, inflation is far too high, and persistently high inflation undermines the ability of our economy to perform at its full potential,” Federal Reserve Bank of New York President John Williams said in a text of a speech to be delivered before an audience in Phoenix.
“Tighter monetary policy has begun to cool demand and reduce inflationary pressures, but our job is not yet done.”
Bloomberg reported a group of underwriters including Goldman Sachs, Bank of America, and Credit Suisse took losses estimated at over $1 billion on a debt package to private equity firms amid higher yields and lower demand.
(With files from Bloomberg)