“There’s a bit of commodity nervousness out there, and talk of large hedge funds liquidating positions is keeping buyers to the sidelines till they see some price stability,” said Sterling Smith, an analyst with Country Hedging.
Silver settled below $40 a troy ounce for the first time in almost a month as higher trading costs continued to force nervous traders out of the market.
The decline in silver prices spooked other markets, leading to selling across the commodities sector while hedge funds reduced their exposure to hard assets.
Silver for May delivery fell $3.193, or 7.5%, to settle at $39.383 per troy ounce on the Comex division of the New York Mercantile Exchange. The last time the contract settled below the psychological threshold of $40 was April 7.
Monthly movement of Silver on Propurchaser as of May 1st