Silver Prices on Track for Weekly Gain of More than 5%

London (Aug 11)  Silver prices are on track for large weekly gains as geopolitical risks drove investors into the safety of precious metals.

Silver futures for September delivery climbed 7 cents, or 0.4%, to $17.14 a troy ounce at 6:55 a.m. ET. The contract hovered within a narrow range of $17.01 and $17.20 overnight.

The grey metal is riding a four-day winning streak, including a massive two-day rally on Tuesday and Wednesday, as a war of words between the United States and North Korea triggered an exodus from riskier assets and into traditional haven plays. Silver is on track for a weekly gain of more than 5%, and is currently trading at its highest level since June 14.

Gold prices are also on track for large weekly gains. December gold futures, the most actively traded contract, nudged up $3.20, or 0.3%, to $1,293.30. Bullion spiked 1.3% on Wednesday for its largest single-day advance since mid-May.

Global equity markets have come unhinged as investors continued to monitor tensions on the Korean peninsula. On Thursday, U.S. President Donald Trump doubled down on threats against Pyongyang by declaring that his earlier warnings might not have been harsh enough. Trump vowed to rain down “fire and fury” on North Korea in response to its missile tests.

Global stock markets were down across the board on Friday. On Thursday, U.S. stocks posted their biggest one-day drop in nearly three months. Volatility spiked more than 40% as a result.

U.S. equity futures were trading lower in pre-market activity, pointing to a rough start to the day in New York.

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