MarketWatch reported May 13 that gold futures dropped 1%, losing $14.60 to $1,492.10 an ounce while silver rose 0.7%, gaining $0.10 to $35.04. Silver had fallen consistently since reaching a high of almost $50 late last month.
Fluctuations are attributed in part to the U.S. dollar’s rise against the Euro. “Dollar-denominated commodities often inversely track the dollar, as a rising greenback makes them more expensive to holders of other currencies,” MarketWatch explained.
George Gero, a vice-president at RBC Wealth Management, said high margin requirements in precious metals have also discouraged potential buyers.
But Dillon Gage Metals president Terry Hanlon added, “This recent price correction doesn’t change the basic fundamentals, which include good demand for silver to make coins in a number of countries.”