Silver Prices Dip as Hurricane Irma Makes Landfall

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)

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Sam Bourgi is a financial market analyst for economiccalendar.com. He has more than six years of progressive experience in economic and financial analysis, research consulting and sectoral analysis. As a published author in government, peer-reviewed, online and industry sources, he has developed a fundamental approach to the financial markets with a broad focus on stock indices, commodities and the technology sector. He earned his Bachelor’s Degree from the University of Windsor and Master’s degree from McMaster University.