A one-kilogram silver bar is at Gold Investments Ltd. bullion dealers in London, UK, on Wednesday, July 29, 2020.
Chris Ratcliffe | Bloomberg | Getty Images
Silver prices fell more than 2% on Tuesday as investors rallied after a rally of up to 11.2% to a nearly eight-year high in the previous session.
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Spot silver fell 1.7% to $ 28.48 an ounce to 0039 GMT after hitting $ 30.03 on Monday, the highest value since February 2013.
Silver prices have risen as retail investors, brought by Reddit messages, gather on the market in an attempt to raise prices.
The U.S. Commodity Trading Commission (CFTC) is “closely monitoring” recent activity in the silver markets, the agency’s interim chairman said Monday, as last week’s volatility in the securities markets spilled over into precious metal trading.
CME Group Inc. on Monday raised its Comex 5000 Silver Futures margin by 17.9% to $ 16,500 on a contract basis from $ 14,000 for February.
The frenzy of retail investment in silver has left dealers in the United States all the way to Singapore looking for bars and coins to meet demand.
Spot gold fell 0.2% to $ 1,856.86 an ounce. US gold futures fell 0.3% to $ 1,858.60.
Leading Democrats in the U.S. Senate and House of Representatives tabled a joint $ 1.9 trillion budget measure on Monday, a step toward bypassing Republicans over COVID-19 aid before President Joe Biden meets with Republican senators .
India on Monday cut import duties on gold and silver in a surprising move that industry officials say could boost retail demand and reduce smuggling.
China’s gold consumption fell by almost a fifth in 2020, the China Gold Association said on Monday.
Platinum fell 1.4% to $ 1,111.80 and palladium fell 0.3% to $ 2,239.03.