Hot Commodities: Silver Crashes Under $19 As Precious Metals Continue To Bleed

Silver......

MCX Silver futures fell heavily today, nearing Rs 39000 per kg levels as the global prices crashed to fresh lows under $19 per ounce- a level not seen since August 2009. The commodities dropped in tune with sell off in gold, which exacerbated the pressure already built up on the white metal. The benchmark COMEX Silver futures are down by a massive 3% to 18.98 per ounce right now. Gold is also down to near three year low of $1249, down $26.10 per ounce on the day.

There has been a constant wall or worry in place for the precious metals in last few weeks with the meltdown seen mid April refusing to let go of investor sentiments. Both silver and gold crashed in the current week as ETF outflows accelerated and a rise in US dollar in global currency markets had a dampening effect on the commodity complex.

The holdings of the iShares Silver Trust- the world's largest silver-backed exchange traded fund slipped to near 9800 tonnes- around eight month low. A critical break under $20 per ounce level at the start of the week turned the sentiments around for silver and the metal melted today in what has been auguring as another death spell for the bullion counters.

The volatility in global stocks has not helped the precious metals much and the fact that Copper prices are lingering around two year lows is making it very difficult for silver to witness any bargain buying. The MCX Silver futures for July gave up nearly Rs 1300 per kg in first two hours of trade with an early break under 40k exposing the metal to virtually a limitless downside trade. The counter quotes at Rs 39685, down nearly Rs 1000 or 2.41% on the day with 4.11% increase in open interest.
Source by Commodity Insights