A silver bar of one kilogram is on Wednesday 29 July 2020 at Gold Investments Ltd.
Chris Ratcliffe | Bloomberg | Getty Images
Silver prices fell more than 2% on Tuesday as investors posted gains after rising as much as 11.2% to a high of eight years in the previous session.
Fundamentals
Spot silver fell by 1.7% at 0039 GMT to $ 28.48 per ounce, after hitting $ 30.03 on Monday, the highest since February 2013.
Silver prices rose as retail investors, filled with messages on Reddit, piled up the market in an effort to push up prices.
The US Commodity Trading Commission (CFTC) is closely monitoring recent activity in silver markets, the agency’s acting chairman said on Monday when volatility in the securities markets spread after the precious metals trade last week.
CME Group Inc. increased Comex 5000 Silver Futures margins Monday by 17.9% to $ 16,500 per $ 14,000 contract for February.
The retail investment frenzy in silver has sent traders from the United States to Singapore scrambling for bars and coins to meet demand.
Spot gold dropped 0.2% to $ 1,856.86 per ounce. US gold futures fell 0.3% to $ 1,858.60.
Top Democrats in the U.S. Senate and House of Representatives on Monday introduced a $ 1.9 billion joint budget measure in a move to bypass Republicans over COVID-19 relief before President Joe Biden met with Republican senators.
India on Monday lowered import duties on gold and silver in a surprising move that, according to retail officials, could increase demand in retail and curb smuggling.
China 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 fell 0.3% to $ 2,239.03.