Precious metals corrected lower on Tuesday morning, with silver leading the drop while investors took profits from Monday’s rally.
– Silver was last at $19.795/19.815 per ounce – it ran into selling pressure after trying and failing to get hold above $20. Yesterday the metal hit fresh two-year highs above $21 but looked overbought; market participants said the substantial move higher was not justified.
– “Evidently, speculative financial investors played a major part in the price increase – this at least is what is suggested by the latest CFTC data, which showed that the already record-high net long positions had been further expanded,” Commerzbank said.
– “There is now considerable correction potential from this side. If the ‘hot air’ were to dissipate, the silver price could come under more significant pressure,” it added.
– The gold price was last at $1,344.65/1,345.05 per ounce, down $4.55 on Monday’s close. It peaked at $1,357 in the the previous session.
– Platinum at $1,052/1,062 was down $9 while palladium at $592/600 was $14 lower. Still, market participants said that safe-haven demand remained steady and dips should attract further buying.
(Editing by Mark Shaw)
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Source: Bullion Desk News
