Commodities Friday August 7, 1987 : Precious Metals Tumble

Precious metals futures prices tumbled Friday as support for silver prices dissipated.

On other markets, oil futures declined, livestock and meat were mostly higher and most grain and soybean contracts were lower.

Silver lost more than 65 cents an ounce and gold fell more than $13.

Metals prices started the day on a weak note, influenced by such factors as a stronger dollar, lower oil prices and continuining quiet in the Persian Gulf, said Bette Raptopoulos, an analyst in New York with Prudential-Bache Securities.

These factors put metals on the defensive, she said, and when technical market factors started the selloff in silver, successive computer-generated sell orders were triggered, sending the metal plunging.

“Platinum and gold followed,” said Ms. Raptopoulos, “despite the fact that a threatened strike is imminent in South Africa.” Gold and coal miners set a strike date for Sunday.

Cattle futures advanced strongly and contracts for near-term deliveries of hogs and pork bellies also were higher on the Chicago Mercantile Exchange.