Silver Prices Steady After Nearly Three-Week Rout

London (May 9)  Silver held steady Tuesday, with the futures market consolidating in a narrow range after a nearly three-week rout sent prices to five-month lows.

July silver futures edged down 3 cents, or 0.2%, to $16.22 a troy ounce at 7:36 a.m. ET. The grey metal fluctuated within a tight range of $16.15 and $16.32.

Prices were little changed on Monday in subdued response to the French election. Silver continues to trade at 2017 lows, having declined roughly 12% from last month’s peak.

Comex gold prices were little changed Tuesday after failing to extend a rally at the beginning of the week. The June futures contract was last down $1.90, or 0.2%, at $1,225.20.

Precious metals are being pressured by risk appetite in the financial markets following round one of the French presidential election April 23. With Emmanuel Macron securing the presidency on Sunday, the threat of an imminent EU crisis involving France has faded. In theory, this should give investors more breathing room to drive equity prices higher.

The U.S. dollar has also been a source of resistance in the early part of the week. On Monday the greenback rallied half a percent against a basket of global peers. The dollar index extended gains on Tuesday, rising 0.3% to 99.39.

In economic data, German industrial production declined less than expected in March, the Federal Statistics Office reported Tuesday. Industrial output declined at a seasonally adjusted 0.4%, following a downwardly revised 1.8% increase the previous month.

Meanwhile, Berlin’s trade surplus narrowed to €19.6 billion in March from €21.2 billion the previous month, according to a separate batch of government data.

Source: EconomicCalendar