AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 129.06 Decreased By ▼ -0.47 (-0.36%)
BOP 6.75 Increased By ▲ 0.07 (1.05%)
CNERGY 4.49 Decreased By ▼ -0.14 (-3.02%)
DCL 8.55 Decreased By ▼ -0.39 (-4.36%)
DFML 40.82 Decreased By ▼ -0.87 (-2.09%)
DGKC 80.96 Decreased By ▼ -2.81 (-3.35%)
FCCL 32.77 No Change ▼ 0.00 (0%)
FFBL 74.43 Decreased By ▼ -1.04 (-1.38%)
FFL 11.74 Increased By ▲ 0.27 (2.35%)
HUBC 109.58 Decreased By ▼ -0.97 (-0.88%)
HUMNL 13.75 Decreased By ▼ -0.81 (-5.56%)
KEL 5.31 Decreased By ▼ -0.08 (-1.48%)
KOSM 7.72 Decreased By ▼ -0.68 (-8.1%)
MLCF 38.60 Decreased By ▼ -1.19 (-2.99%)
NBP 63.51 Increased By ▲ 3.22 (5.34%)
OGDC 194.69 Decreased By ▼ -4.97 (-2.49%)
PAEL 25.71 Decreased By ▼ -0.94 (-3.53%)
PIBTL 7.39 Decreased By ▼ -0.27 (-3.52%)
PPL 155.45 Decreased By ▼ -2.47 (-1.56%)
PRL 25.79 Decreased By ▼ -0.94 (-3.52%)
PTC 17.50 Decreased By ▼ -0.96 (-5.2%)
SEARL 78.65 Decreased By ▼ -3.79 (-4.6%)
TELE 7.86 Decreased By ▼ -0.45 (-5.42%)
TOMCL 33.73 Decreased By ▼ -0.78 (-2.26%)
TPLP 8.40 Decreased By ▼ -0.66 (-7.28%)
TREET 16.27 Decreased By ▼ -1.20 (-6.87%)
TRG 58.22 Decreased By ▼ -3.10 (-5.06%)
UNITY 27.49 Increased By ▲ 0.06 (0.22%)
WTL 1.39 Increased By ▲ 0.01 (0.72%)
BR100 10,445 Increased By 38.5 (0.37%)
BR30 31,189 Decreased By -523.9 (-1.65%)
KSE100 97,798 Increased By 469.8 (0.48%)
KSE30 30,481 Increased By 288.3 (0.95%)
Markets

Silver bounces back even as retail frenzy takes a break

  • "Silver prices are now finding an equilibrium that better reflects supply-demand fundamentals, with the WallStreetBets mania having simmered down," said FXTM market analyst Han Tan.
Published February 3, 2021

Silver attempted a rebound on Wednesday after an over 8% plunge in the previous session prompted investors to buy in, although the social media-driven rally that started last week appears to have run out of steam.

Spot silver rose 0.7% to $26.80 an ounce by 0824 GMT.

Prices hit $30.03 on Monday, their highest since February 2013, after small investors responding to social media calls flooded the market in a GameStop-style squeeze.

"The (retail) frenzy is dead," Stephen Innes, chief global market strategist at financial services firm Axi said, adding the underlying demand for silver on the back of green energy drive will support prices.

Silver, both a safe-haven asset and an industrial metal, plunged over 8% on Tuesday after CME Group raised maintenance margins on silver futures by 17.9% on Monday, in a move aimed at reducing market volatility.

"(CME's intervention) is allowing the markets to breathe a lot more easier because that fear of retail flash mobs has diminished quite greatly," Innes added.

The buzz that started last Thursday saw silver dealers scramble to find supplies for retail buyers, while one billion ounces of silver was traded in London on Monday.

"Silver prices are now finding an equilibrium that better reflects supply-demand fundamentals, with the Wall Street Bets mania having simmered down," said FXTM market analyst Han Tan.

As global economy attempts a recovery, silver can showcase a more organic and orderly run-up to the psychologically-important $30 mark, he added.

Analysts expect some volatility to continue even though posts on the WallStreetBets Reddit forum, which sparked this retail rush, urged traders to stay away from silver.

Spot gold eased 0.1% to $1,835.60 per ounce. US gold futures added 0.2% to $1,836.80.

Platinum shed 0.2% at $1,092.52 and palladium fell 0.6% at $2,228.19.

Comments

Comments are closed.