Silver futures declines Tuesday, as investors re-entered stocks after two days of heavy selling following Britain’s vote to leave the European Union (EU). Silver for September delivery reached a low of $17.55 a troy ounce Tuesday. The futures contract would later settle around $17.66 a troy ounce, declining 8 cents or 0.5% from the previous close. The technical outlook remains favourable, suggesting that the grey metal still has further upside following one of the biggest flights to safe havens in recent memory. Price action is strengthening, with the 20-day and 50-day moving averages extending their upward trajectories. Relative strength is holding above 60 after approaching overbought levels in recent sessions. The MACD continues to show accelerating upward momentum. Losses in gold were much more dramatic on Tuesday, as the yellow metal remains vulnerable to global risk sentiment. Gold for August delivery fell $13.70 or 1% to reach $1,311.00 a troy ounce. As of Monday, one ounce of gold was worth 74.55 ounces of silver. That ratio was down near 72.7 just last week. Meanwhile, platinum prices edged down $4.90 or 0.5% to settle at $974.59 a troy ounce. Precious metals were unable to extend their rally despite a weaker US dollar. After reaching a more than three-month high, the dollar index declined 0.7% against a basket of world currencies Tuesday. The British pound rallied 1% against the US currency, but continued to trade near 31-year lows. The pound sold off around 12% following last Thursday’s Brexit vote and has been under pressure ever since. European stocks rebounded Tuesday after massive declines in the previous two sessions, as investors continued to react to Britain’s vote to leave the EU. The pan-European Stoxx 600 was up 2.4% through the midday session. The index plunged 4.1% on Monday and around 7% on Friday in what has amounted to a disastrous two days for global equity markets. London’s FTSE 100 Index rose 2.5% and Germany’s DAX added 2.1%. France’s CAC 40 Index was last up 2.6%, as was Spain’s IBEX 35 Index. Asian markets ended mixed on Tuesday even as the Japanese yen came off recent highs. Tokyo’s Nikkei 225 index settled up 0.1%. However, the country’s Topix Index fell 0.1%. Hong Kong’s Hang Seng Index settled down 0.3%. Mainland China’s Shanghai Shenzhen CSI 300 Index closed up 0.5%. American stock futures snapped back into positive territory after heavy declines in each of the previous two days. Dow Jones futures were last up 177 points in pre-market activity, pointing to a strong start to the day. The Dow has shed nearly 900 points over a two-day losing streak that began on Friday. Global equity markets were encouraged by rising oil prices, which rebounded on Tuesday from heavy losses following the Brexit saga. The West Texas Intermediate (WTI) benchmark for US crude futures rose $1.11 or 2.4% to reach $47.44 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, advanced $1.07 or 2.3% to reach $48.23 a barrel. European Central Bank (ECB) President Mario Draghi surprised global markets on Tuesday when he made no explicit mention to Brexit in an open address at a central bank forum in Portugal. Mr. Draghi acknowledged that ultra-loose monetary policy had “inevitably� created negative side-effects on the European and global economies, urging policymakers about the “common responsibility� to address ongoing economic weakness. “We can benefit from alignment of policies,� Mr. Draghi said on Tuesday. “What I mean by alignment is a shared diagnosis of the root causes of the challenges that affect us all; and a shared commitment to found our domestic policies on that diagnosis.� There were no major economic data events in Europe and Asia on Tuesday. The US Commerce Department will release its third and final estimate of first quarter growth later this morning. The Japanese government is also set to report on retail sales early on Wednesday, followed by several releases in Europe and North America. This includes a preliminary June CPI inflation report from Germany and latest figures on personal income and outlays from Washington. Japan will also report on industrial production, housing starts and construction orders later in the week.

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