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Silver Finds Calmer Tone After Posting Biggest Drop Since August

Published 02/02/2021, 06:51 PM
Updated 02/02/2021, 07:09 PM
© Reuters.  Silver Finds Calmer Tone After Posting Biggest Drop Since August

(Bloomberg) -- Silver climbed after posting the biggest loss since August, with markets calming following the buying frenzy that sent prices to an eight-year high earlier this week.

Futures for March delivery rose 2% to $26.93 an ounce on the Comex at 7:50 a.m. in Singapore. Prices tumbled 10% on Tuesday after CME Group (NASDAQ:CME) raised margin requirements following the surge to above $30 on Monday. Spot silver added 0.8%, while gold, platinum and palladium were little changed.

The silver market has been in the spotlight after posts on the WallStreetBets forum calling for a “short squeeze,” although sentiment has now turned with users speculating supporting posts may be part of a pump-and-dump scheme -- or that hedge funds infiltrated the board. Silver is steadying after Tuesday’s drop, which was also partly fueled by plunging shares of GameStop Corp (NYSE:GME). and AMC Entertainment (NYSE:AMC) Holdings Inc., two popular trades with the Reddit crowd.

©2021 Bloomberg L.P.

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