Silver Falls More Than 6% as Precious Metals Retreat After Rally
A historic squeeze in the silver market in London also showed signs of easing, prompting some profit-taking by investors.
Silver fell more than 6% in its biggest drop in six months as the broad precious metals group retreated following a furious rally this week.
The pullback came as concerns eased over credit quality in the US and trade frictions between China and the US, which is denting haven demand for gold and silver. A historic squeeze in the silver market in London also showed signs of easing, prompting some profit-taking by investors.
“The London shortage is alleviating somewhat from extreme levels and the more regional dislocations smooth out, there could be pressure and profit-taking,” said Nicky Shiels, head of metals strategy at MKS Pamp SA.
The retreat follows a rebound in Treasury yields, supported by easing concerns over US regional banks and their lending activity — a shift that adds to dampening haven demand.
Spot silver was down 6.0% to $50.96 an ounce as of 1:09 p.m. in New York. Spot gold fell 3.0% and platinum and palladium both slumped.
