Gold for June delivery added $4.10 to $1,433 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,440.30 and as low as $1,429.10 while the spot gold price was adding $4, according to Kitco's gold index.
Silver prices jumped 76 cents to $38.49 after hitting a 30-year record of $38.62 an ounce. Backwardation in silver has reversed, which means the spot month is now trading lower than future months. This signals that the supply crunch seen in February and March has ebbed for now, creating a possible headwind for prices.
"While silver is overbought in the very short term, silver's outlook remains bullish," says Mark O'Byrne of Goldcore, a bullion dealer. "Silver remains the preserve of a handful of contrarian and hard money advocates and is only beginning to enter the consciousness of the mainstream." As silver becomes more "trendy" then the market could see more physical shortages.
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