Silver Prices Drops Below $19.50 Today, Positive Data Strokes Taper Fears
New York (Dec 2) Silver is taking an even bigger hit than gold this morning. Silver prices are down about 2.75% at $19.43/oz so far today. Better than expected manufacturing data has sent the dollar which is putting even more pressure on commodities this morning.
The better than expected report led to a jump in the dollar. This also led to more downward pressure on commodities such as gold and silver. The ICE dollar index (DXY) is gaining about 0.3% in early trading. The ICE dollar index shows the dollar’s strength against six other currencies. The index rose 0.6% in November.
Gold and silver investors are feeling nervous on the first trading day of December. Data from the labor market later this week should give a good indication on whether the Fed will taper this month or not. Data coming later this week include jobless claims and nonfarm payrolls. Better than expected data will continue to build the Fed’s case for a December taper.
The lack of a taper from the Fed has supported metals in recent months. That support is starting to fracture though, as investors come to the realization that a taper is happening sooner or later.