ECB News Damages Precious Metals Sentiment

iNVEZZ.com reported that silver sank on Monday morning due to better-than-expected stress test results from the European Central Bank (ECB). The results “improved equity market sentiment” and thus hurt prospects for precious metals.

As quoted in the market news:

Silver for immediate delivery had fallen 0.22 percent, or three cents, to $17.14 as of 08:20 GMT, and was trading 11.2 percent below its 100-day simple moving average of $19.31. Spot silver came under pressure after a report released yesterday by the ECB showed that most European banks passed a test of their ability to weather a crisis, easing demand for precious metals as an alternative to equities.

‘Good news out of Europe does affect sentiment,’ said Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., as cited by Bloomberg. ‘More importantly, investors will be watching the Fed meeting this week and how that impacts the dollar and equity markets.’

Click here to read the full iNVEZZ.com report.