Silver Price Sinks to $16.87 After Yellen Comments

iNVEZZ.com reported that silver fell Monday in Asian trading for the second session in a row as investors continued to keep recent comments from US Federal Reserve Chair Janet Yellen in mind.

As quoted in the market news:

Silver for immediate delivery had shed three cents of its value, or 0.18 percent, to $16.87 per ounce as of 07:19 BST, and was trading about 0.77 percent above its 50-day simple moving average of $16.72. During the previous session, the precious metal lost nearly one percent, trimming its second consecutive weekly advance.

Silver has retreated from the five-week high of $17.39 touched on Thursday, after Federal Reserve chair Janet Yellen signalled on Friday that the US central bank may be on track to raise interest rates later this year.

Meanwhile, the price of silver for May delivery, the most actively traded contract on the COMEX in New York, had fallen over 10 cents, or about 0.61 percent, to $16.88 an ounce as of 06:48 GMT. The contract declined about six cents during the previous session.

The news outlet also states:

The upbeat comments from the Fed chair have also given a boost to the US dollar. The DXY dollar index, which pegs the US currency versus a basket of six of its major peers, was up 0.28 percent at 97.5620 as of 06:31 BST today, the gauge still remains some way beneath the 12-year high of 100.3900 reached earlier this month. Market participants will be looking forward to Friday’s employment situation report from the Department of Labor for further cues on the strength of the US economy.

Investors will also be eyeing the ongoing conflict in Yemen. Safe haven demand for precious metals has been boosted since Thursday after Saudi Arabia and its Gulf region allies launched military operations, including air strikes, against Houthi rebels in Yemen. According to reports across the media, warplanes struck Yemen’s capital Sanaa after daybreak today.

Click here to read the full iNVEZZ.com report.