Silver prices have fallen after reaching $ 53 an ounce, the highest level in its history, to a strong wave of rise driven by heavy purchase operations in London, in addition to increasing demand for safe assets. Stain prices fell 2.2% after reaching $ 53.55 per gram in London, with a high of $ 1 per peak scored in January 1980 at a contract canceled by the Chicago Board of Trade when the Hunt Brothers tried to control the market. Gold also rose to a new record high and continued its rise for the eighth week in a row. A London liquidity crisis calls for the shipping of silver through air concern over a lack of liquidity in London to have caused a global search for silver, with reference prices that jumped to almost unprecedented levels compared to New York. This has encouraged some traders to discuss cargo space on transatlantic flights to transport silver bully, an expensive method that is usually reserved for gold to take advantage of higher prices in London. The price premium is about $ 1.55 an ounce at the beginning of trading Tuesday, lower than a difference of $ 3 last week. Silver rental rates, which represent the annual cost of borrowing the metal on the London market, rose by more than 30% on Friday, after being high all year. This has resulted in considerable costs for those who want to roll over short positions. The great demand of India in recent weeks has contributed to impoverishing the offer of tradable bully in London, after a flurry of shipping to New York earlier this year, the fear that silver would be included in the list of goods that faced our customs duties, causing widespread unrest between the two most important trading centers. Also read: The Gold Boom raises Indian household possession to $ 3.8 trillion. An American investigation revives concerns about duties. Although precious metals were officially excluded from duties in April, traders are still nervous before releasing the results of the US administration’s investigation under Article 232 regarding ‘Vital Minerals’, which includes silver, together with platinum and palladium. The investigation has revived the fear that new rates can affect these minerals, which can aggravate the market density of the market. Goldman Sachs Group analysts wrote in a comment that the silver market is “less fluid and is about a ninth of the Gold market size, which strengthens price movements.” They added: “In the absence of the demand of central banks to stabilize silver prices, even a temporary drop in investment flow could lead to a sharp correction, because it would eliminate the scarcity situation in London that was behind most of the recent rally.” Precious metals continue their historical increase. The four most important precious metals have jumped between 56% and 81% since the beginning of the year, in a rising wave that dominated commodity markets. Gold’s increase was supported by the purchases of the central bank, an increase in the investment fund ownership and interest rate cuts by the Federal Reserve. Recurring tensions between the United States and China, threats for the independence of the Federal Reserve, and the US government’s closure has also increased the demand for safe ports. Factors that support prices: Bank of America analysts on Monday raised their price target for the end of 2026 for silver from about $ 44 an ounce to $ 65, based on the continued market shortage, which increases financial deficits and low interest rates. Meanwhile, investors assessed the relief of the Federal Reserve before the next interest rate meeting later this month. Philadelphia president Anna Paulson indicated on Monday that she supported further cuts by a quarter of a percentage point this year, saying that monetary policy should ignore the impact of rates on higher consumer prices. Lower borrowing costs will support non-interest-bearing precious metals. Spot gold rose 0.1% to $ 4,115.44 per gram at 14:17 in Singapore, after reaching a historic high of $ 4,179 per gram. The Bloomberg Dollar Index remained unchanged after it rose by about 1% last week, and silver and palladium fell, while platinum rose. *Prices have been adjusted to reflect market movements
Gold and silver prices are dropping after recording new record levels
