Investing.com - " Silver prices plunged 3% on Thursday, as investors liquidated long positions amid uncertainty surrounding the Federal Reserve's stimulus program.
Prices of the precious metal have largely tracked shifting expectations as to whether the Fed would start tapering its USD85-billion-a-month asset-purchase program by the end of the year.
On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD22.34 a troy ounce during European morning trade, down 2.8%.
Silver prices fell by as much as 3.4% earlier to hit a session low of USD22.19 a troy ounce, the weakest level since October 22.
The December contract ended 2.18% higher on Wednesday to settle at USD22.98 a troy ounce.
Futures were likely to find support at USD21.98 a troy ounce, the low from October 22 and resistance at USD23.09, the high from October 30.
The Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities, as widely expected.
Fed officials stuck to the view that the economy is expanding "at a moderate pace" and said downside risks were diminishing, sparking speculation the central bank could start tapering stimulus at its December meeting.
The U.S. dollar strengthened as traders to reassessed their expectations regarding the duration of the Federal Reserve's bond-buying program.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.15% to trade at 79.90.
A stronger U.S. dollar usually weighs on silver, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Later in the day, the U.S. was to release data on initial jobless claims and a report on manufacturing activity in the Chicago region.
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.
Elsewhere on the Comex, gold for December delivery fell 0.95% to trade at USD1,336.30 a troy ounce, while copper for December shed 0.6% to trade at USD3.305 a pound.
