Silver Sets New 2011 Low But Jumps Up from It
Silver continued its biggest downward rally since May 2011, following the decline of the liquidity in the markets and the increased
The whole metals market can be described with a phrase “extremely bearish.” While previously the fall in the industrial metals would mean an uptrend in the precious metals, the recent trading sessions show that all metals can fall simultaneously and to do it very well. Although some analysts say that silver is falling because the investors have to close their position to cover the expanding stock market losses, silver has its own reasons to fall.
Last Friday, CME announced an increase of the margin requirements for the futures trading in silver. These new requirements take effect today. While the Federal Reserve is concerned with the stagnation in the economic recovery, there will be no new quantitative easing round, which means that the banks will have less cash to speculate on the gold/silver market.
Silver fell from $30.75 to $30.01 per troy ounce on the spot market as of 17:23 GMT today, following a drop to as low as $26.11/ounce during the early trading session. It lost more than 24% since Wednesday.
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