Silver tumbles as oil drops in commodity sell-off

Silver fell about 15% and oil lost more than US$1 a barrel as easing geopolitical tensions and a firmer U.S. dollar helped trigger a wider sell-off in commodities.

Commodity prices slid sharply on Thursday, led by a steep fall in silver and declines in oil. The moves followed announcements of U.S.-Iran talks and a positive telephone call between the leaders of the U.S. and China. A stronger U.S. dollar also coincided with the pullback and was reported as adding pressure on dollar-priced commodities. Key developments: - Spot silver plunged by about 15% from recent highs. - Oil dropped more than US$1 a barrel but remained close to multi-month highs as investors tracked diplomatic developments between the U.S. and Iran. - The U.S. dollar climbed to a two-week high, which was reported as making commodities more expensive for holders of other currencies. - Other commodities moved unevenly: soybeans rose to a two-month high, while copper and iron ore eased amid demand concerns and higher inventories. Summary: The sell-off trimmed some of the speculative gains that had pushed precious metals and other commodities to recent peaks, and market liquidity was reported as thin during the move. Market participants were described as watching the progress of diplomatic talks and related developments; Undetermined at this time.