Silver Prices Dip Ahead of U.K. Elections, ECB Policy Meeting

London (June 7)  Silver prices eased off six-week highs on Wednesday, but remained generally well supported in a week marked by growing risk aversion in the financial markets.

July silver futures fell 11 cents, or 0.6%, to $17.61 a troy ounce at 7:26 a.m. ET. Prices fluctuated within a range of $17.55 and $17.72 through the overnight session.

Gold prices also dipped following a more than 1% advance during the previous session. Gold for August delivery slipped $4.60, or 0.4%, to $1,292.80 a troy ounce on the Comex division of the New York Mercantile Exchange.

A weak dollar underpinned precious metals at the start of the week. The U.S. dollar index rebounded from eight-month lows on Wednesday, climbing 0.3% to 96.95. It has lost more than 5% since the start of the year.

In economic data, Australia’s gross domestic product (GDP) expanded just 0.3% in the first quarter, a government report showed Wednesday. That followed a 1.1% expansion in the fourth quarter. The slowdown was attributed to negative contributions from net exports and dwelling investment.

Volatility is set to return on Thursday as the United Kingdom heads for snap parliamentary elections. A controversial YouGov forecast suggests the Conservative party would gain just 304 seats in parliament, well below the 326 needed to form a majority government. It’s also well below the Tories’ current parliamentary makeup.

The European Central Bank (ECB) will also deliver a policy announcement on Thursday. Though no rate change is expected, officials may drop a reference to downside risks in the economy following the latest string of better than expected data.

Source: EconomicCalendar