By Rachel Koning Beals
Gold and silver futures soared Friday, marching higher as the dollar softened and investors bought assets perceived as havens to start July.
Metals have benefited from worries sparked by the U.K.’s decision to exit the European Union, dubbed Brexit, roiled markets. But precious metals had retreated somewhat as appetite for risk lured buyers back into stocks over the past few sessions.
August gold GCQ6, +1.58% gained $16.70, or 1.3%, to $1,337.50 an ounce. Trading has been choppy since futures prices marked their highest close since July 11, 2014, earlier this week. All told, gold futures prices are on track for a 1.1% weekly gain and up about 7% for the second quarter, according to FactSet data.
Meanwhile, silver outpaced its sister metal, with September silver SIU6, +4.52% gaining 65 cents, or 3.5%, at $19.28 an ounce early Friday. Thursday’s close at $18.62 marked the highest settlement since mid-September of 2014. Futures prices are on track for an 8.3% weekly gain—the metal’s best since weekly advance in 15 months. Silver roughly 20% during the second quarter and are up nearly 40% so far this year.
Still, precious metals gains have held up relatively well as concerns about anemic global growth persist.
“Gold has managed to hold onto most of the Brexit-related gains made at the end of last week, while silver has actually made significantly more,” said Fawad Razaqzada, market analyst at FOREX.com and City Index. “Unlike the former, the latter has also many industrial uses and so when base metals like copper rally, silver benefits from this source, too.”
That means silver is typically less sensitive to the “risk-on, risk-off” trade that can swing gold in two directions when demand for equities and other commodities ebb and flow.
“Both metals have also found support from...