Silver and other metals experienced significant price increases this year, with silver gaining more than 25 percent since the beginning of 2024, stated Saxo Bank in its latest market report. So far this year, silver has outperformed gold and ranked as one of the top-performing major commodities.
On Monday, spot silver gained 1.51 percent to $31.9695 by 9:43 GMT, rising above the $30 key level.
In addition, the Bloomberg Commodity Index is rising towards its third monthly increase for the first time since 2022, when inflation was over 8 percent. In May alone, the index has seen a 4 percent increase, setting the stage for its strongest performance since July 2023.
Oil prices maintain gains
In addition to gains in bullion prices, oil prices also maintained their weekly gains as geopolitical tensions heated in Russia and the Middle East. Brent crude hovered near $84 a barrel after achieving its first weekly increase this month. Meanwhile, West Texas Intermediate remained just under $80.
Despite an increase of 9 percent this year due to OPEC+ supply reductions, oil prices have cooled since mid-April amid easing geopolitical risks. Moreover, hedge funds have expressed a growing bearish outlook, with money managers cutting their net long positions in Brent for a second consecutive week.
Asian markets poised for gains
Saxo Bank’s report forecasts growth in Asian markets after U.S. stocks recorded positive performance. Futures in Australia, Hong Kong and China saw an increase. However, futures in Japan saw a slight decline. In the U.S., the S&P 500 and Dow Jones Industrial Average maintained their positive trajectory as the Dow surpassed the 40,000 mark for the first time. On Monday, the S&P 500 Index saw a modest gain of 0.12 percent.
Investors now are closely watching China’s efforts to support its lagging property sector, with some skeptical of the adequacy of these measures. Amid the property sector boost, China’s stock market has boosted the broader Asian region. Hence, the MSCI Asia Pacific Index is on a six-day winning streak.
Read: Gold prices hit record high of $2,440.49 on interest rate cut bets
Treasury yields mixed
U.S. treasury yields saw an increase on Friday but experienced an overall decline last week, with two-year treasuries falling over 20 basis points from their April high. On Monday, Australian 10-year yields also rose. Meanwhile, Japanese government bond (JGB) futures declined on Friday, closing down 16 ticks at 143.91 as Japan prepares to auction inflation-linked bonds.
Despite these movements, Federal Reserve governor Michelle Bowman explained that cost pressures are likely to stay high for longer. However, Bowman expects pressures to ease as interest rates decline.
Markets now await Fed speakers to address the public on Monday for further clues on interest rate cuts. Moreover, they will closely monitor key economic releases such as the May FOMC minutes, University of Michigan sentiment data, and durable goods orders to gauge the health of the U.S. economy.
For more news on markets, click here.
