Investing.com - Silver futures fell sharply on Monday, trading
at the lowest level since September 2010 as a weak technical
outlook continued to weigh on the precious metal.
Market talk of an unidentified investor selling off a big chunk of
silver holdings during illiquid early Asian hours also weighed and
likely exacerbated the sharp move lower.
On the Comex division of the New York Mercantile Exchange, silver
futures for July delivery traded at USD21.38 a troy ounce during
European morning trade, down 4.3% on the day.
Comex silver prices fell by as much as 9.5% earlier in the day to
hit a session low of USD20.21 a troy ounce, the weakest level since
September 14, 2010.
Silver prices were likely to find support at USD20.00 a troy ounce,
the low from September 14, 2010 and resistance at USD22.87, October
According to some market participants, silver's plunge was
triggered by a sudden move higher in the yen during early Asian
The yen found support after Japan's Economy Minister Akira Amari
indicated that the yen's correction from excessive strength was
almost over and said that further yen weakness could have a
negative impact on Japan's economy.
The move lower in USD/JPY prompted a major investor to liquidate a
major stake in silver futures to cover positions on the yen.
Silver prices were also under pressure as investors continued to
speculate over an earlier-than-expected end to the Federal
Reserve's quantitative easing program amid indications of an
improving U.S. economic outlook.
Silver traders are now looking ahead to Wednesday's Federal Reserve
minutes, for further hints regarding the central bank's monetary
Elsewhere on the Comex, gold for June delivery lost 1.1% to trade
at USD1,350.55 a troy ounce, while copper for July delivery fell
1.1% to trade at USD3.287 a pound.
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