Yesterday Spot silver lost more than 12% within few minutes while Gold fell more than 2%.
The metal was overdue for correction and selling was triggered after CME and other brokers enhanced the margin requirement for long positions in Silver.It leads speculators to cut their long positions,,also stop losses get triggered after breaking of certain level. Dollar index show some positive strength after death of Osama Bin Laden.
Time will tell whether history repeat again or not,,as similar to Crude oil when prices made record highs of $148 and fell back to $35.
Finally,,there is a season for a partucular commodities and possibility is that season of precious metals is near to end.Now onwards most likely sideways move is possible.
