Gold extends rally, silver soars 8% as dollar and yields retreat

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Gold prices popped nearly 2% and silver surged to its strongest daily percentage gain in 20 months on Monday, helped by declines in the U.S. dollar and Treasury yields.

Front-month Comex gold (XAUUSD:CUR) for October delivery closed +1.8% to $1,692.90/oz, while Comex October silver (XAGUSD:CUR) finished +8.2% to $20.519/oz, its biggest one-day gain since February 1, 2021.


The biggest movers among precious metals stocks included: (NGD) +14.7%, (CDE) +13.7%, (EXK) +13.6%, (IAG) +11.7%, (AG) +9.9%, (HL) +8.6%, (FSM) +7.9%, (HMY) +6.4%, (PAAS) +6.3%, (AUY) +6.2%, (KGC) +5%, (AEM) +4.4%, (NEM) +4%.

Yields fell following the Bank of England's temporary bond buying program and disappointing U.S. ISM manufacturing PMI data, according to's Fawad Razaqzada, referring to the Institute for Supply Management's manufacturing survey that tumbled to a 28-month low of 50.9% in September.

"The fundamental backdrop is getting less bearish" for gold, analysts at the Sevens Report said, but investors should expect the yellow metal to sink to new lows "if we do not see a peak in yields and the buck."

"You're going to have to see a close back above $1,700 to get the [gold] bulls revived a little bit, and even that, really doesn't change the technical posture a whole lot," Kitco's Jim Wyckoff said.

Silver has been rising due to expectations that it will be in "big demand" as the transition toward clean energy continues, according to Kinesis Money's Rupert Rowling.

New Gold (NGD) shares also were helped by an upgrade at RBC Capital, which cited an improved outlook for its Rainy River mine.

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