Silver prices fell more than 6%, their biggest drop in six months, amid a general decline in precious metals after a strong rally during the current week. The decline came as concerns about credit quality in the United States eased and trade tensions between China and the United States reduced demand for safe-haven assets such as gold and silver. The historic shortage crisis in the London silver market also showed signs of easing, prompting some investors to take profits. A mortgage fraud scandal shakes US banks and exposes credit gaps. Nikki Shiels, head of metals strategy at MKS Pamp, said: “It appears that the shortfall in the London market has started to pull back slightly from peak levels, and as regional imbalances ease, pressure and profit-taking may increase.” The drop came after a rise in U.S. Treasury bond yields, supported by a decline in concerns about U.S. regional banks and their lending activities, a shift that led to weak demand for safe-haven assets. Spot silver fell 6.0% to $50.96 an ounce at 1:09 p.m. in New York, while spot gold fell 3.0%, and both platinum and palladium also fell.
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