Silver prices tumbled to the lowest point in over a year as pressure on precious metals continues to stretch amidst a stronger US dollar.
At US$21.64 per ounce by midday Thursday, silver which is used in solar technology and electronics among other uses is seeing its worst monthly performance since July 2020.
Silver, just like gold, is under pressure this year as more central banks from the world’s leading economies start signaling a pullback in stimulus measures used to cushion the economic impact of the pandemic.
Much of the buying in gold and silver is prompted by their “safe haven” nature where investors flee other assets like stocks, bonds and currencies.
However, with the changing economic dynamics as vaccination speeds up across the globe, investors have also reduced exposure to gold and silver.
Beyond the dollar gaining strength which in turn is hurting dollar-denominated metals, the improved market sentiment in Europe and the US evidenced with bullish stock markets performance have increased selling pressure for silver and other precious metals.
Meanwhile, gold clawed back from its Wednesday losses where it tumbled to a seven-week low but remains pressured by the firm US dollar.
The yellow metal gained 0.82% from US$1,722.90 on Wednesday to US$1,737.00 per ounce as of midday Thursday.
Other metals, platinum and palladium gained 0.99% and 2.50% respectively whilst nickel has shed 1.34% compared to yesterday’s prices.
Equity Axis
