ECM: Silver Prices Decline as Trump Speech Triggers Large Rally in U.S. Dollar
Silver prices dipped lower on Wednesday, as the U.S. dollar surged against a basket of world peers after President Donald Trump pledged â€śmassive tax reliefâ€ť for the middle class.
May silver futures declined 11 cents, or 0.6%, to $18.36 a troy ounce at 7:30 a.m. ET. Prices were down as much as 1.1% earlier in the day.
Gold futures were down sharply in mid-week trading. The April futures contract fell $12.00, or 1%, to $1,241.90 a troy ounce. That was its lowest level in a week.
The U.S. dollar index advanced to a new rally high Wednesday, climbing 0.7% to 101.85. The greenback rose against the euro, pound and Canadian dollar.
In his first address to a joint Congress Tuesday evening, President Trump said he would seek bipartisan support and work for middle class Americans. The president defended his first 40 days in office, and touted the progress his administration has made on trade and immigration.
U.S. equities futures were trading firmly higher in pre-market activity, pointing to another record-setting open on Wall Street. The Dow Jones Industrial Average declined on Tuesday for the first time in 13 sessions.
A tumbling euro sent European stocks soaring on Wednesday. The pan-European Stoxx 600 gained 1.1%, with all sectors trading in positive territory.
In economic data, a measure of Eurozone manufacturing activity strengthened to 70-month highs in February. The Markit final Eurozone manufacturing purchasing managersâ€™ index (PMI) climbed 0.2 point to 55.4. That was slightly below a preliminary estimate of 55.5.
Meanwhile, U.K. manufacturing PMI weakened to a three-month low of 54.6 in February, Markit said in a separate release.
Markit will release its monthly report on U.S. manufacturing later in the morning.