U.S. Silver Falls More than Gold on Dollar Gains
Source: Commodity Online (4/19/10)
"Silver prices traded lower due to stronger dollar and panic. . ."
Silver prices traded lower due to stronger dollar and panic spread after world's biggest investment bank, Goldman Sachs, was caught in fraud charges, which led a fall across major asset classes.
Base metals' complex on LME fell 2.11%. The benchmark MSCI world index for stocks closed 1.57% down. iShares silver holdings continued to reduce holdings, which yesterday dropped by 45.74 to 8912.94 MT. iShares silver holdings declined by 265.33 MT last week. MCX silver futures also fell in line with international markets. MCX silver for May delivery closed 3.20% down at Rs. 26,963/kg on Friday.
Currently Silver prices are trading lower at COMEX GLOBEX electronic platform in Asian hours and hovering around $17.65. While the market is slightly lower now, more falls could be seen during the Asian and European session.
Silver prices may take cues from lower crude oil prices and lower Asian equities. Moreover, LME base metal prices are currently trading substantially lower, which may again pull silver prices to trade lower.