Silver posted its largest one-day fall in six weeks on Tuesday after having hit a 31-year high in the previous session, while gold was pressured by investor uncertainty over the likely course of US monetary policy. Spot silver fell by as much as 4.9 percent to a session low of $44.62 an ounce, after having risen to $49.31 on Monday, its highest since touching $49.48 in January 1980.
Silver finished down at $44.98 an ounce at 3:20 pm EDT (1920 GMT), compared with $46.90 late in New York on Monday, set for its biggest daily percentage loss since March 15. Silver at-the-money implied options volatility has risen by over 35 percent in the last four trading days to hit its highest level since mid-November. US silver futures saw record volume on Monday, with over 300,000 lots changing hands, with another 170,000 trading by 3:20 pm on Tuesday.
Silver futures for May finished down at $45.05, having closed at $47.149 on Monday. Gold posted its second daily decline, in spite of the weakness in the dollar, which usually acts as an incentive to non-US investors to buy the metal. The spot price was last down 0.4 percent at $1,502.40 an ounce, while US gold futures for June delivery finished down 0.4 percent at $1,503.50, trading between $1,492.00 and $1,508.50 during the session. Silver prices are still up about 50 percent so far this year after gains of more than 80 percent last year. Platinum was last at $1,803.48 an ounce, down from Monday's last quote at $1,819.30, while palladium traded at $755.00 an ounce versus $757.80 on Monday.