Silver Prices Edge Lower as Haven Demand Fades

London (April 25)  Silver prices dipped further below $18.00 a troy ounce Tuesday, as investors held on to bullish stock bets in the wake of the French presidential election.

July silver futures declined 4 cents, or 0.2%, to $17.90 a troy ounce at 7:33 a.m. ET. Prices fluctuated within a daily range of $17.85 and $18.05. The grey metal was remarkably steady on Monday despite sharp declines in the price of gold.

Silver has declined more than 3% over the past week.

June gold futures also declined on Tuesday after paring losses at the start of the week. The contract was down $5.10, or 0.4%, at $1,272.40 a troy ounce through the early morning.

The U.S. dollar index also stabilized from a selloff against the euro that was triggered by growing bets France would remain part of the European Union (EU). The dollar index rose 0.2% overnight before paring gains to settle flat at 99.06.

The euro was little changed Tuesday morning, and was last seen trading at 1.0873 U.S..

Precious metals ran into volatility on Monday after the first round of the French presidential election triggered a relief rally in global equities. Investors are betting that pro-EU Emmanuel Macron will emerge victorious in his second-round runoff against the National Front’s Marine Le Pen.

European equity markets extended their rally Tuesday. The pan-European Stoxx 600 Index was up 0.3% through the midday. France’s CAC 40 Index advanced 0.2%, a day after it spiked more than 4% to reach its highest settlement in nine years.

U.S. stock futures were also trading higher in pre-market activity, pointing to a positive start to the day on Wall Street.

Source: EconomicCalendar