(Updates prices)
* Some volatility to persist in silver, analysts say
* Record jump in iShares Silver Trust holdings on Tuesday
By Eileen Soreng
Feb 3 (Reuters) - Silver rose on Wednesday, helped by hopes
global stimulus measures would prompt a pick-up in industrial
demand, after a sharp decline from a near eight-year peak scaled
with the help of a social media-inspired buying frenzy.
Spot silver XAG= rose 0.6% to $26.76 per ounce at 1:49
p.m. EST (1849 GMT). It fell more than 8% on Tuesday.
The recent moves have attracted a lot of new interest in
silver, "not necessarily Reddit investors, but just people out
there looking at silver as an undervalued asset," said Bob
Haberkorn, senior market strategist at RJO Futures.
"There is an increased physical demand for silver at this
point."
Prices surged to $30.03 on Monday after retail investors
attempted to replicate a GameStop style rally.
The buying spree left silver dealers scrambling to find
supplies of coins and bars. The frenzy fizzled, partly after the Chicago Mercantile
Exchange hiked margins for holding silver futures to rein in the
market gyrations. Analysts expect some volatility to continue.
U.S. Treasury Secretary Janet Yellen has called a meeting of
top officials that could clamp tougher markets regulation for
hedge funds, small investors and stockbrokers. While silver moves in tandem with safe-haven gold under
normal circumstances, it also closely follows economic cues
because of its industrial applications.
A weaker dollar and expectations of stronger economic
activity amid easy monetary policy globally, make "a strong
argument to see higher silver prices", and the recent buying
frenzy "made it much faster than expected", UBS analyst Giovanni
Staunovo said.
Reflecting sentiment, holdings in iShares Silver Trust, the
largest silver-backed ETF HLDISHAST=XAG , jumped by a record
57.8 million ounces on Tuesday. GOL/ETF
Spot gold XAU= fell 0.2% to $1,833.93 per ounce. U.S. gold
futures GCv1 settled up 0.1% at $1,835.10.
A steepening U.S. Treasury yield curve and a jump in
equities are pressuring gold, said Daniel Ghali, commodity
strategist at TD Securities. US/ .N
Platinum XPT= rose 0.8% to $1,103.04 and palladium XPD=
gained 1.2% to $2,269.69.
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Silver prices and iShares Silver ETF https://tmsnrt.rs/3avrJml
FACTBOX-How silver is traded ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>