Silver for March delivery added some 4% on Tuesday ending at just over $37 an ounce on the New York Mercantile Exchange.
The precious metal’s gains for 2012 now stands at over 30%.
Contract silver last settled above the $40 an ounce mark in mid September but then the metal shed more than $10 over just a few trading days.
MarketWatch quotes Charles Nedoss, a senior market strategist with Olympus Futures in Chicago:
“Silver recently broke through technical levels that, after some consolidation late last week, freed it for Tuesday’s rally.
Silver also caught some tailwind from firmer U.S. equities, he added.”
The bellwether Dow Jones Industrial Index closed above the 13,000 level for the first time since May 2008 after consumer confidence numbers increased hopes of a sustained economic recovery in the US.
Reuters quotes Frank McGhee, head precious metals trader at Integrated Brokerage Services LLC:
“Both gold and silver are lifted by an expectation of continued liquidity coming into the market.
“Massive fund buying and predominantly technical factors boosted silver, which was undervalued compared to everything else and we are covering a lot of the ground today,” he said.
Gold futures once again made an assault on the $1,800 an ounce level on Tuesday, settling at $1,788. The precious metal’s gains for 2012 now stands at over $180 an ounce.
Contract gold last settled above the $1,800 an ounce mark on September 20 last year but shortly thereafter the metal shed more than $100 over just a few trading days.