Losing 14% in the past four days, silver felt the pain of a correction that brought gold along for the ride. The former hit a three-week low, and U.S.July silver futures fell to $40.88 in midmorning European trading. That continued its 8% fall from Tuesday, when CME Group for the third time in a week increased margin requirements on the metal's futures. Earlier on it had hit its lowest level since the middle of April at $40.30 per ounce.
Reuters reported that gold followed, although not as quickly; spot gold was bid at $1,534.60 per ounce after reaching a record $1,575.79 an ounce on Monday; on Tuesday it had fallen to $1,540.38. COMEX gold lost as well, falling 0.3% to $1,535.80.
Commmerzbank analyst Daniel Briesemann said in the report, "It seems to be the same price pattern we have seen in the last few days: the silver price retreats heavily overnight then almost recovers losses in early trading before it retreats again in later trading." He added, "Generally speaking we still think that silver prices will come down quite significantly over the next few weeks. The price rise to the high at end-April was definitely exaggerated and a price correction was overdue; now it's going this way."