US Dollar and Fed’s Next Move Continue to Tarnish Silver Prices
San Francisco (Nov 8) Gold’s long-standing duel with the US dollar continued to drag on silver prices this week. However, physical demand for the white metal remains strong, especially in the coin market, where sales of American Eagle Silver Bullion Coins have already beat last year’s sales total and remain on track to overtake the record set in 2011.
Silver futures started out at a two-week low, trading down 0.162 cents, to $21.67 an ounce, on Monday. The precious metal tracked gold as a rally in US equities stripped away some of the allure of safe-haven investments; the slump was mitigated by a slightly weaker dollar and news8 that senior Federal Reserve officials are not in a rush to scale back quantitative easing.