Silver attempts rebound even as retail sweep wanes

Silver prices attempted a rebound on Wednesday after an over 8 per cent plunge in the previous session prompted some buying, although the social media-driven rally that started last week appears to have cooled off.

Spot silver rose 1.4 per cent to $26.98 an ounce by 0052 GMT. Prices hit $30.03 on Monday, its highest since February 2013. Silver rocketed to their highest since 2013 on Monday after small investors responded to calls on Reddit and other social media to pile into the market and push prices up.

The amount of silver traded in the London market surged to 1.006 billion ounces on Monday, three times the level typical in recent months, the London Bullion Market Association said on Tuesday.

The United States Mint said on Tuesday it was unable to meet surging demand for its gold and silver bullion coins in 2020 and through January. However, CME Group on Monday raised margins on its COMEX 5000 Silver Futures by 17.9 per cent.

Spot gold rose 0.1 per cent to $1,839.16 per ounce. U.S. gold futures added 0.4 per cent to $1,840.90.

U.S. Treasury Secretary Janet Yellen said on Tuesday new growth forecasts from the Congressional Budget Office showed the United States “desperately” needs Congress to act on President Joe Biden’s coronavirus rescue package.

Platinum gained 0.3 per cent at $1,097.52 and palladium shed 0.1 per cent to $2,240.49.

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