Silver prices pulled back sharply on Monday, as the U.S. dollar stabilized after deadly Hurricane Irma made landfall in Florida.
Silver futures for September delivery fell 29 cents, or 1.6%, to $17.84 a troy ounce at 7:41 a.m. ET. The contract was down by as much as 2.3% earlier to reach $17.70.
The grey metal is coming off a week of solid gains propelled by risk aversion and a plunging U.S. dollar. The contract rose 1.7% last week, reaching its highest level since April.
Gold prices also backtracked on Monday after surging to 12-month highs during the previous week. The December futures contract fell $11.60, or 0.9%, to $1,339.60 a troy ounce.
The U.S. dollar rose against a basket of currencies Monday amid a dearth of economic data. The U.S. dollar index (DXY) was up 0.2% through the early morning to trade at 91.57. The DXY basket plunged last week to its lowest level since January 2015. This included multi-year lows against the euro and Canadian dollar.
Hurricane Irma’s devastating path moved up Florida’s coast overnight after a catastrophic storm surge left millions without power. The storm made landfall as a Category 4 hurricane before being downgraded as it made its way inland. It has since weakened to a Category 1 storm as it makes its way north.
Irma’s damage is expected to reach well north of $135 billion, based on initial estimates.
Comex Silver Futures (December 2017)