Silver prices shed 2.61% per ounce on Thursday as the shinning metal went down to $31.66 an ounce in a mixed market reaction to the renewed anxiety over the Eurozone financial crisis and a stronger dollar due to the improved economic data of the United States.

Mario Draghi, the President of the European Central Bank, had announced a cut in the interest rates of the Eurozone regional bank by about 25 per cent which was contrary to the rate increases implemented by his predecessor.

The ECB monetary measures were announced just as the EU leaders conferred together in Brussels on ways to further curb the debt crisis. In addition to a reduction in the interest rates, the European Central Bank also reduced the reserve ratio for the banks within the zone, all aimed at reducing liquidity and injecting some financial stability in the Eurozone nations.

While these ECB measures may have been well intended for the European Union countries, the opposite effects were recorded in the global capital and commodity markets. The Standard and Poor 500 rating fell by 2.11% while the prices of silver and other metals also fell.

Analysts commented that the markets reacted negatively to the ECB announcement possibly because of the unfavorable answer given by Draghi when prodded on whether the EU apex bank will make further efforts to stabilize the Eurozone debt crisis by increasing bond purchases to which the ECB President had simply given a ‘’no’’ answer.

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