Precious Metals Soar on Weak Dollar, Lower Oil Prices

Silver prices surged 12% in the past week, its best performance since January, while gold rose 6%, also its strongest weekly gain in months. The precious metals' rally is driven by a weak dollar and lower oil prices.

A softer dollar makes gold and silver less expensive for overseas investors, boosting demand. Spot gold is trading near $4,325 per ounce, with silver quoted near the $64 per ounce level.

Lower oil prices ease inflationary concerns, making non-interest-yielding assets like gold and silver more attractive to investors. China's central bank has continued buying gold for five consecutive months, while Chinese investors are rotating back into gold-backed ETFs.