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Silver attempts rebound even as retail sweep wanes

Published 03/02/2021, 12:24 pm
Updated 03/02/2021, 12:30 pm
© Reuters.
XAU/USD
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GC
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Feb 3 (Reuters) - Silver prices attempted a rebound on Wednesday after an over 8% plunge in the previous session prompted some buying, although the social media-driven rally that started last week appears to have cooled off.

FUNDAMENTALS

* Spot silver XAG= rose 1.4% to $26.98 an ounce by 0052 GMT. Prices hit $30.03 on Monday, its highest since February 2013.

* Silver rocketed to their highest since 2013 on Monday after small investors responded to calls on Reddit and other social media to pile into the market and push prices up. The amount of silver traded in the London market surged to 1.006 billion ounces on Monday, three times the level typical in recent months, the London Bullion Market Association said on Tuesday. The United States Mint said on Tuesday it was unable to meet surging demand for its gold and silver bullion coins in 2020 and through January. However, CME Group (NASDAQ:CME) on Monday raised margins on its COMEX 5000 Silver Futures by 17.9%. Spot gold XAU= rose 0.1% to $1,839.16 per ounce. U.S. gold futures GCv1 added 0.4% to $1,840.90.

* U.S. Treasury Secretary Janet Yellen said on Tuesday new growth forecasts from the Congressional Budget Office showed the United States "desperately" needs Congress to act on President Joe Biden's coronavirus rescue package. Platinum XPT= gained 0.3% at $1,097.52 and palladium XPD= shed 0.1% to $2,240.49.

DATA/EVENTS AHEAD (GMT) 0500 India

IHS Markit Serv PMI

Jan 0600 Russia Markit Services PMI

Jan 0700 UK

Reserve Assets Total

Jan 0850 France Markit Serv, Comp PMI

Jan 0855 Germany Markit Serv, Comp Final PMI Jan 0900 EU

Markit Serv, Comp Final PMI Jan 1000 EU

HICP Flash YY

Jan 1000 EU

HICP-X F&E Flash YY

Jan 1300 Brazil Markit Serv, Comp PMI

Jan 1445 US

Markit Serv, Comp Final PMI Jan 1500 US

ISM N-Mfg PMI

Jan

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