A one kilo silver bar will be at the gold dealers of Gold Investments Ltd. on Wednesday, July 29, 2020. in London, UK.
Chris Ratcliffe | Bloomberg | Getty Images
Silver prices fell more than 2% on Tuesday as investors rallied by a staggering 11.2% to a nearly eight-year peak in the previous session.
Fundamentals
Spot silver fell 1.7% to $ 28.48 an ounce at 0039 GMT, down $ 30.03 on Monday, the highest level since February 2013.
Silver prices skyrocketed as retail investors, fueled by posts on Reddit, entered the market in an attempt to drive prices up.
The US Commodity Futures Trading Commission (CFTC) is “closely monitoring recent activity in the silver markets,” the acting chairman of the agency said Monday, as stock market volatility spilled over into precious metal trading last week.
CME Group Inc increased Comex 5000 Silver Futures margins by 17.9% on Monday to $ 16,500 per contract, from $ 14,000 for February.
The madness of the silver retail business has caused dealers from the United States to Singapore to look for bars and coins to meet the demand.
Spot gold lost 0.2% to $ 1,856.86 an ounce. US gold futures fell 0.3% to $ 1,858.60.
Top Democrats in the U.S. Senate and House of Representatives filed a $ 1.9 trillion joint budget measure Monday, in a move toward bypassing Republicans on COVID-19 aid before President Joe Biden met with Republican senators .
India cut tariffs on gold and silver on Monday, a surprising move that industry officials say could boost demand for retail and limit smuggling.
Chinese gold consumption fell by nearly a fifth in 2020, the China Gold Association said Monday.
Platinum fell 1.4% to $ 1,111.80 and palladium was down 0.3% to $ 2,239.03.