Silver heads rebound in precious metals
Thursday, 11 November 2010
Silver continued to lead the precious metals rollercoaster ride Wednesday, as its price rebounded from a near-10 per cent fall, reports Internet.
By mid-morning in London, spot silver was trading at $28 a troy ounce - up just slightly from Monday's close. But that disguised a wild ride in the meantime, that saw it rise 6 per cent to a peak of $29.33 on Tuesday before falling almost 10 per cent in four hours at the end of the New York trading session.
The sharp correction was triggered by an announcement from CME Group, which runs the Comex exchange in New York where silver futures are traded, that it was raising by 30 per cent the level of collateral that silver traders have to post.
Silver's slide stimulated similar losses for the other precious metals, with palladium dropping 9 per cent and gold losing 2.9 per cent.
But Wednesday heralded a rapid recovery. Spot gold recovered 1.6 per cent to trade at $1,405.49 a troy ounce, still within reach of Tuesday's all-time nominal high of $1,424.10. Palladium rebounded 5.5 per cent and silver was up 5.7 per cent from its low on Tuesday night.
By mid-morning in London, spot silver was trading at $28 a troy ounce - up just slightly from Monday's close. But that disguised a wild ride in the meantime, that saw it rise 6 per cent to a peak of $29.33 on Tuesday before falling almost 10 per cent in four hours at the end of the New York trading session.
The sharp correction was triggered by an announcement from CME Group, which runs the Comex exchange in New York where silver futures are traded, that it was raising by 30 per cent the level of collateral that silver traders have to post.
Silver's slide stimulated similar losses for the other precious metals, with palladium dropping 9 per cent and gold losing 2.9 per cent.
But Wednesday heralded a rapid recovery. Spot gold recovered 1.6 per cent to trade at $1,405.49 a troy ounce, still within reach of Tuesday's all-time nominal high of $1,424.10. Palladium rebounded 5.5 per cent and silver was up 5.7 per cent from its low on Tuesday night.