Silver prices rebounded sharply on Thursday, snapping back from a five-day skid as dollar gains slowed and risk aversion crept back into the markets.
Silver for September delivery rose 12 cents, or 0.7%, to reach $16.56 a troy ounce at 7:24 a.m. ET. Prices fluctuated in a daily range of $16.47 and $16.71.
Movement in silver has been volatile as of late, with prices falling 7% in the two weeks through Wednesday. Price action is expected to remain volatile for the foreseeable future, reflecting trading activity over the past 52 weeks.
Gold prices also snapped back into positive territory Thursday, with the August futures contract advancing $5.20, or 0.4%, to $1,251.00 a troy ounce.
Gold and silver are both on track for weekly gains. The yellow metal holds a premium of 76.03 over its grey counterpart. That’s how many ounces of silver are needed to buy just one ounce of gold bullion. The ratio has increased sharply in recent weeks as silver posted outsized percentage losses relative to gold.
After surging to one-month highs, the U.S. dollar has weakened against a basket of world currencies. The dollar index fell 0.2% on Wednesday and was last seen trading flat at 97.55.
There were no major economic data releases scheduled. Action resumes on Friday with a deluge of manufacturing PMI reports from Europe and the United States. The Commerce Department will also report on new home sales for the month of May.