Silver Corrects, But Still Heading for Best Performance Since 1979
Silver prices stabilized after experiencing their biggest drop in more than five years in the previous session, amid profit-taking following a strong year-end rally. Silver held above $71 an ounce on Tuesday, despite falling 9% in the previous session. Gold was little changed, trading around $4,340, after falling 4.4%. The decline was driven by technical indicators suggesting excessively rapid price increases, coupled with thin market liquidity, which exacerbated price fluctuations.
Despite Monday's decline, both gold and silver remain on track for their best annual performance since 1979. The rise in precious metal prices has been driven by high central bank buying, large inflows into exchange-traded funds (ETFs), and the U.S. Federal Reserve's three consecutive interest rate cuts. These rate cuts have served as a major boost for non-yielding commodities like gold and silver.
Spot silver fell 0.5% to $71.74 an ounce at 7:15 a.m. in Singapore, after hitting a record $84.01 in the previous session. Despite the correction, silver has continued to perform exceptionally well this year, outperforming many other commodities.
Gold also edged up 0.1% to $4,336.86 during the same period. However, platinum and palladium slumped after experiencing double-digit percentage declines on Monday. Both metals faced significant pressure from profit-taking, which affected the overall precious metals market.
The Bloomberg Dollar Spot Index ended the previous session little changed. Meanwhile, the market remains uncertain regarding global economic dynamics and upcoming monetary policy, which could influence the direction of precious metal prices in the coming months. (alg)
Source: Newsmaker.id
