Silver prices retreat on stronger dollar today
London (Nov 7) Silver bears are winning the battle today thanks to a stronger dollar. A surprise move from the European Central Bank led to a plummeting euro and a rising dollar. The ECB cut its refi rate by a quarter percentage point to a record low of 0.25 percent. Most economists were not expecting the ECB to cut the rate at this month’s meeting. The expectation was for the cut to happen next month.
There were a few economists who saw this coming and said a cut was possible since annual inflation in the EU is below the ECB’s target of around 2%.
The news sent the euro plunging from a high of 1.35 to 1.33. It has rebounded somewhat at 1.338. The drastic move lower in the euro sent the dollar higher. The dollar index (DXY) pushed higher on the news and is trading at 81.13, or 0.78% higher.
Silver futures for November are trading down 0.74% this morning at $21.58. How are silver stocks holding up today?
Silver Wheaton Corp (NYSE:SLW) is down 0.76% today at $22.22. Pan American Silver Corp. (NASDAQ:PAAS) is taking an even bigger hit and is down 1.5% right now at $10.44.
Coeur Mining, Inc. (NYSE:CDE) was hit hardest and is down 8.5%. Coeur Mining also released earnings yesterday that missed expectations. Adjusted losses were $23.4 million, or $0.23 per share, missing estimates of $0.20 per share.
Hecla Mining Co. (NYSE:HL) is holding up well today. Shares were briefly positive but are now down $0.02 at $3.09.
Silvercorp Metals Inc. (NYSE:SVM) is down more than 3.8% in early trading at $2.78.