Money Matters - Simplified

Silver prices plunge, gold falls in tandem

Though by a margin not that striking, gold prices went down as well. Spot gold traded up to $1,578.20 an ounce, before a fall to $1,550 in tandem with the silver move.

Gold, silver prices fell dramatically in early Monday trade in Asia.

There was a drastic drop in silver prices when Asian markets opened Monday morning. The spot price fell over 10 percent in a jiffy, Kitco data reveals.

Spot silver witnessed a drop of 12 percent in 11 minutes at one point, as per Dow Jones Newswires. It put the intraday at a high of $48.15 an ounce, before a plunge to $42.21.

By 10:00 a.m. Hong Kong time (10:00 p.m. U.S. Eastern time), spot silver moved up at $44.93 an ounce, rebounding from below the $43 level earlier seen in the day.

According to some reports, low volume was due to holidays in some markets on Monday. Besides, the steep fall indicated a “speculative move” against the silver price.

As for the futures market, the contract for July delivery (SIN11) underwent a 8 percent fall at $44.720, still bouncing from the initial low of $42.40.

The day saw a similar picture for platinum and palladium too. Prices of both fell 1.8 percent with platinum at $1,839.00 an ounce, and palladium at $775 in the spot market.

Gold prices not left unhit
Though by a margin not that striking, gold prices went down as well. Spot gold traded up to $1,578.20 an ounce, before a fall to $1,550 in tandem with the silver move.

However, by 10:00 a.m. in Hong Kong, spot gold had recuperated to $1,549.10.

From a high of $1,576.52 to a sharp $1,542.61 low, Dow Jones Newswires reports say “the drop occurred just ahead of silver’s early Monday dive”.

For the June delivery contract (GCM11), benchmark futures market had been fixed on Friday at $1,556.40 on the Comex division of the New York Mercantile Exchange. But it fell to $1,547.50 in the early morning electronic trade on Monday.

The day saw a similar picture for platinum and palladium too. Prices of both fell 1.8 percent with platinum at $1,839.00 an ounce, and palladium at $775 in the spot market.