Silver Prices Fall to New 2017 Lows After U.S. Independence Day
London (July 5) Silver prices declined sharply on Wednesday to reach their lowest levels of the year, as traders braced for an active session following U.S. Independence Day.
Silver for September delivery fell 16 cents, or 1.1%, to $15.94 a troy ounce at 7:02 a.m. ET. The grey metal reached a session low of $15.85 in overnight trading after briefly trading at $16.19.
Gold was little changed through the morning session, reversing earlier gains. The August futures contract was last seen at $1,220.00 a troy ounce, little changed from the previous close.
Meanwhile, the U.S. dollar strengthened against a basket of world currencies ahead of an active second-half of the week. The dollar index (DXY) advanced 0.2% to 96.43.
Investors are on high alert after North Korea successfully test-launched an intercontinental ballistic missile, putting it one step closer to expanding its nuclear reach. The United States has condemned the missile launch and has called on the United Nations to act.
The missile test boosted haven demand in the holiday-shortened Tuesday session, where gold prices notched minor gains.
In economic data, China’s services-sector growth abruptly weakened last month, raising concerns about a broad slowdown in the world’s second-largest economy.
The Caixin China services purchasing managers’ index (PMI) slipped to 51.6 in June from 52.9 the previous month on a scale of 1-100 where 50 separates expansion from contraction.
The PMI report indicated that further weakness was in store for the Chinese economy. Beijing will release its official second-quarter GDP report July 17.
U.S. jobs data will drive market headlines in the second half of the week. The ADP Research Institute will release its advance estimate of private-sector payrolls on Thursday. Labor economists will release official nonfarm payrolls data the following day.
Source: EconomicCalendar
