Silver led gains in precious metals as the dollar dropped and a report showed U.S. manufacturing cooled in April, boosting demand for haven assets.
A gauge of factory activity fell in April from a more than 37-year high a month earlier, according to data from the Institute for Supply Management released Monday. Treasuries climbed to session highs following the data and the greenback retreated.
Gold and silver have clawed back gains after dropping earlier this year as signs of an accelerating U.S. economy boosted the dollar and Treasury yields, reducing demand for the metals as stores of value. Slower expansion in U.S. manufacturing reinforces expectations that central banks including the Federal Reserve will keep interest rates near zero. Low rates bolster demand for precious metals, which don’t offer interest.