Silver is following gold downward

Gold and silver futures got off to another rocky start to begin the trading week. Silver fell as low as $20.84 a troy ounce, the lowest since September 2010, later rebounding to close 3 per cent higher at $22.91 in New York trading.

The price of silver was the standout mover in financial markets Monday as it took a hammering for the second trading session in a row, even as stocks remained relatively solid amid hopes over the U.S. economy. Silver’s stumble also brought down the price of gold; the yellow metal hit a one-month low of $1,338.10 an ounce and extended its slump for an eighth straight day. Gold has fallen more than 7% in May.

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Commodities Rally to Highest in More Than Six Months on Bailout for Greece

Commodities jumped to a six-month high as euro-area finance ministers reached agreement on a second debt bailout for Greece and U.S. equities rallied, boosting prospects for raw-material demand.

The Standard & Poor’s GSCI Spot Index of 24 commodities rose 1.6 percent to 699.17 at 2:56 p.m. in New York after reaching 700.79, the highest since July 27. Metals led the gains with silver up 3.7 percent and aluminum gaining 3.5 percent. The Dow Jones Industrial Average climbed above 13,000 for the first time since 2008.

via Commodities Rally to Highest in More Than Six Months on Bailout for Greece – Bloomberg.

Commodities Erase 2011 Gain on Faltering Recovery

Crude-oil futures fell to the lowest level in five months on the New York Mercantile Exchange. On the Comex in New York, silver for September delivery fell as much as 6.2 percent, and copper futures dropped to a one-month low.

Commodities slumped, erasing gains for the year, on growing concern that the global economic recovery is faltering.

The Thomson Reuters/Jefferies CRB Index of 19 raw materials slumped 2.4 percent to 329.31 as of 1 p.m. in New York, led by declines in silver, energy and nickel. A settlement at that level would leave the index down 1 percent for the year.

via Commodities Erase 2011 Gain on Faltering Recovery – Bloomberg.

Silver Slips Below $40, Spooks Other Markets

“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.

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Abreast of the Market: Some Commodities Are Heading Back Down

Cotton has pulled back 17% from the all-time record set in early March, and sugar is down 34% from its multidecade high in February. Lead and zinc have tumbled in recent weeks after shooting up in the second half of 2010. Copper has shed 6% this year.

The wild ride continued early today, when spot silver suffered one of its worst drops on record, falling 12% in 11 minutes at its most severe. It opened at $47.863 an ounce, rose to $48.150, then in 20 minutes fell to $42.210 before stabilizing. The selloff also hit spot gold, which fell 2.2% in just over a half-hour to $1,542.61 an ounce from $1,576.52.

The months-long rally in commodity prices has sparked fears it could ignite inflation or cripple consumer spending. But a surprising trend is now sweeping the markets for some key materials: Prices are falling.

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via Abreast of the Market: Some Commodities Are Heading Back Down – WSJ.com.

Commodities Snap 4-Day Advance on Fed Speculation

Commodities snapped a four-day winning streak, led by declines in silver and copper, on speculation the Federal Reserve may end its bond-buying program and as China was said to be tightening its credit policy.

Copper for three-month delivery dropped as much as 3.3 percent, the most since March 9. Futures caught up with losses in New York and Shanghai after the London exchange resumed trading today after a two-day holiday. Zinc fell as much as 4.7 percent to $2,249 a ton, also the most since March 9.

The Standard & Poor’s GSCI Index of 24 raw materials lost as much as 0.9 percent to 745.49, the biggest intraday loss since April 19. The index was 0.2 percent lower at 751.12 at 12:47 p.m. London time. Silver fell as much as 5.4 percent and copper slumped 2.5 percent.

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via Commodities Snap 4-Day Advance on Fed Speculation, China Credit – Bloomberg.com.