Silver matches recent 6-month high then subsides
Monday February 15, 11:19 am Eastern Time
LONDON, Feb 15 (Reuters) - Silver matched its recent six-month high of $5.79 an ounce during European business on Monday, only to fall back amid light sales in a thin market, dealers said.
Gold made a half-hearted attempt at cracking well-tested resistance at $290.00 a troy ounce but slipped lower as dollar strength versus the yen removed what little momentum it had. Silver lease rates remained high during the afternoon, albeit with a wide range of prices offered across the lending curve. Indicative one-month metal rates ranged from 11 to 17 percent versus the seven percent quoted for most of last Friday.
''There was definitely some selling up at the highs around the $5.80 area,'' said one London dealer, who suggested producer sales were likely with every move higher from there.
''The producers are behaving slightly different from last year, they are being more realistic. They are beginning to take the gold
producers' view which is basically to sell any rally,'' he said.
Many silver miners produce metal as a by-product of base metal operations and so have welcomed the chance of higher prices
in at least one of their metals.
Where silver goes next will depend on U.S. trade once New York dealers return from their long weekend break on Tuesday.
Data released by the U.S. Commodity Futures Trading Commission late on Friday showed long positions still growing in New York's COMEX future contracts.
Net long positions as of February 9 amounted to more than 8,300 tonnes, over 2,000 tonnes higher than a week earlier.
Spot silver was last at $5.73/$5.76, five cents above New York's Friday close.
London gold fixed at $289.20 a troy ounce in the afternoon, down on the morning's one-month high of $290.05, as thin foreign exchange trade strengthened the dollar.
Spot gold was last at $289.25/$290.75, barely changed from its Friday New York close.
Platinum was firmer at $369.00/$371.00, $1.00 up on New York, while palladium was 50 cents down at $355.00/$360.00.
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