A slightly firmer dollar, allied with a steadier tone surrounding risk appetite, curbed precious metal demand on Tuesday with silver prices sliding towards the $19.00 per ounce support area.
Although silver prices edged higher during the Asian session on Tuesday, there was selling interest on approach to the $19.60 area and prices dipped lower again in Europe with continued evidence of lower peaks undermining short-term sentiment. With a more stable dollar environment and some net improvement in risk conditions, silver dipped to the $19.40 area at the US open.
The US economic data releases were stronger than expected with the flash Markit PMI services-sector index strengthening to 51.9 for September from 51.0 previously. The Conference Board consumer confidence index strengthened to the highest level in over 9 years for September at 104.1 from a revised 101.8 in August with gains in the current conditions and expectations components. The dollar was able to gain some support during the New York session as EUR/USD dipped to test support below 1.1200.
There was selling pressure on commodity currencies in US trading as oil prices came under renewed selling pressure. AUD/USD declined towards 0.7650 and USD/CAD strengthened to test resistance around 1.3250 with a move to six-month highs.
Gold prices moved sharply lower after the US open with a slide to below the $1,330 level