IV:Silver futures track gold prices lower as Syria fears recede
Investing.com - Silver futures fell sharply on Tuesday, tracking gold prices lower, as concerns over a U.S. military strike against Syria eased.
On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD23.31 a troy ounce during European morning trade, down 1.7%.
Silver prices traded in a range between USD23.24 a troy ounce, the session low and a daily high of USD23.82 a troy ounce. The December contract settled 0.75% lower at USD23.71 a troy ounce on Monday.
Silver prices were likely to find support at USD23.04 a troy ounce, the low from September 5 and resistance at USD24.13, the high from September 8.
U.S. President Barack Obama said Monday that he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
Separately, Senate Majority Leader Harry Reid late Monday delayed a vote on authorizing military strikes against Syria that had been scheduled for Wednesday.
Meanwhile, investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases following last week’s weaker-than-forecast U.S. jobs report.
Silver traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
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.
Elsewhere on the Comex, gold for December delivery fell 0.8% to trade at USD1,375.90 a troy ounce, while copper for December shed 0.55% to trade at USD3.260 a pound.
Official data released earlier showed that industrial production in China rose 10.4% in August, beating expectations for a 9.9% increase and accelerating from a 9.7% gain in July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
