The Wall Street Journal reported that although silver prices fell 9 percent, hitting a low of $20.25, in the first 10 minutes of electronic trading today, by midday the white metal had climbed 4 percent, to $23.24.
As quoted in the market news:
The drop in the price of silver earlier Monday came shortly after the yen recorded a steep gain against the dollar. Traders said investors may have sold silver to cover losses in the currency market, a move that snowballed as falling prices triggered automatic sell orders. CME Group Inc. halted silver futures trading four times to curb volatility, a spokesman for the exchange operator said. Trading volumes for silver are lower than those for gold, and are therefore more susceptible to sharp moves.
‘The slump of silver is mainly due to fund outflows from precious metals to yen as some investors are betting on an upturn of the Japanese currency as well as [a] continued rally in the equities market in Japan,’ said Yu Kam-Wing, an executive director at Henfin Ltd., a Hong Kong-based gold trader.