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Thursday, 2/25/2021 14:16
SILVER outpaced GOLD prices yet again Thursday, driving the ratio of the yellow metal in terms of its more industrially useful cousin back down towards 2014 levels as the sell-off in government bonds continued amid stronger economic growth and inflation forecasts as expectations for the Covid Crisis to retreat continue to rise. Global stock markets rose further despite longer-term borrowing costs reaching the highest since New Year 2020 as did crude oil, which peaked above $67 per barrel of European benchmark Brent. So-called real yields on 10-year inflation-protected bonds rose to the highest since early July at minus 0.75%. Despite also paying no yield, like gold, silver prices meantime held steady above last week s finish at $27.30 per ounce today, rising towards $28 even as gold fell again, erasing the week s earlier gains to trade
Gold price weakness takes $1.5bn out of largest ETF
Bank of England gold vault. (
Image from archives)
The recent weakness in the gold price trend was accompanied by significant outflows of funds from the largest gold ETF, according to Goldreporter.
Investors withdrew $1.5 billion from the SPDR Gold Shares (GLD) in one week, according to data from the operator.
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As of February 24, the fund’s gold holdings were down 2.3% from the previous week. This represents a withdrawal or sale of 26.53 tonnes of the metal.
Year-to-date, GLD gold holdings are down 63.5 tonnes.
Officially, the fund must physically deposit 1/10 ounce of gold for each unit certificate. The bars are stored in the vaults of major banks in London.
Gold retraces as Yields rise on global recovery hopes. New Covid-19 cases are on a sharp decline since January 22 of this year, rising Global treasury yields to their pre-pandemic highs.