Investing.com - Silver futures surged on Monday to hit a one-week high, as sentiment remained supported amid easing concerns over the possibility the Federal Reserve will begin to taper its bond-buying program in the near future.
Moves in the silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.90 a troy ounce during European morning trade, up 2.3% on the day.
Comex silver prices rose by as much as 2.7% earlier in the session to hit a daily high of USD20.01 a troy ounce, the strongest level since July 17.
Silver prices were likely to find support at USD19.21 a troy ounce, the low from July 18 and near-term resistance at USD20.13, the high from July 17.
Sentiment on the precious metal improved after comments by Fed Chairman Ben Bernanke last week eased concerns over the possibility the central bank will begin to taper its bond-buying program in the near future.
Bernanke said that the pace of the central bank’s bond purchases are not a “preset course”.
The Fed chief reiterated that the central bank will continue to maintain its accommodative monetary policy for the foreseeable future.
Silver prices are on track to post a loss of almost 34% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months.
Elsewhere on the Comex, gold for August delivery rallied 1.8% to trade at USD1,316.55 a troy ounce, while copper for September delivery rose 0.8% to trade at USD3.165 a pound.
