Silver Prices Correct 1% Lower Amid Political Turmoil

New York (May 18)  Silver prices slipped from multi-week highs Thursday, as investors assessed the latest bout of political turmoil in Washington.

July silver futures declined 19 cents, or 1.1%, to $16.72 a troy ounce at 7:28 a.m. ET. The futures contract fluctuated within a daily range of $16.61 and $16.95.

Prices had risen in each of the last six sessions, as the grey metal rebounded from year-to-date lows. The short-term outlook remains favorable, but analysts warn that silver is likely to be range-bound for much of the year.

Gold futures held within a narrow range Thursday morning. The June contract was last seen trading at $1,260.70 a troy ounce, up $2, or 0.2%, from the previous close. Bullion surged to two-week highs on Wednesday as stocks recorded their biggest drop in eight months.

The U.S. dollar stabilized Thursday after sinking in each of the last four sessions. The dollar index is trading at seven-month lows, which has enabled precious metals to stage a broad relief rally in recent weeks.

In economic data, Japan’s gross domestic product (GDP) expanded at a faster than expected 0.5% in the first quarter, the Cabinet Office reported Thursday. That marked Japan’s fifth straight quarterly expansion, the longest streak of uninterrupted gains since 2006.

Meanwhile, the Australian economy added 37,400 workers to payrolls in April, the seventh consecutive monthly gain. Though much bigger than forecast, the increase was solely attributed to part-time employment.

Australia reported a gain of 49,000 part-time jobs. The number of full-time workers dropped by 11,600.

Source: EconomicCalendar