Silver headed for the longest slump in almost three weeks as a strengthening dollar reduced the appeal of commodities as alternative investments. Gold prices fell.
The Bloomberg Dollar Spot Index traded rose for the first time in three sessions amid signs of economic revival in the Sales of silver coins at the U.S. Mint, the world’s largest, fell 27% in July to the lowest monthly total this year.
“The dollar is pushing the precious metals lower,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “Also, there is little physical demand for silver.”
Silver futures for September delivery slumped 1.5% to $19.935 an ounce at 10:12 a.m. on the Comex in New York, heading for the fourth straight drop and the longest slump since July 16. Today’s decline took the price below its 100-day moving average.
Last year, silver and gold slumped the most in three decades on concern that the Federal Reserve would slow the pace of monetary stimulus as the economy showed signs of improvement.
Gold futures for December delivery fell 0.2% to $1,286.90 an ounce after declining 0.5% yesterday.
Trading was 45% below the 100-day average for this time, data compiled by Bloomberg show.
On the New York Mercantile Exchange, palladium futures for September delivery tumbled 1.5% to $842 an ounce.
The price climbed 19% this year through yesterday after a five-month strike by miners cut output in South Africa, the world’s second-biggest producer. Russia is the top source of the metal, used mostly in pollution-control devices in cars.
Platinum futures for October delivery fell 0.9% to $1,453.10 an ounce in New York.
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