IV:Silver futures drop to lowest since August amid Fed uncertainty
Investing.com - Silver prices fell to the lowest level since August on Tuesday, as investors liquidated long positions amid ongoing uncertainty surrounding the Federal Reserve's stimulus program.
On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD20.34 a troy ounce during European morning trade, down 0.05%.
Comex silver prices traded in a range between USD20.20 a troy ounce, the daily low and the weakest level since August 9 and a session high of USD20.40.
The December contract settled down 1.79% on Monday to end at USD20.35 a troy ounce.
Futures were likely to find support at USD20.06 a troy ounce, the low from August 9 and resistance at USD20.76, the high from November 18.
Investors are turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.
New York Fed President William Dudley said Monday he was growing more hopeful that the economy is improving, and added that the fiscal uncertainties that acted as a drag on growth are likely to abate in the coming months.
Silver prices are down approximately 33% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchasing program.
Elsewhere on the Comex, gold for December delivery added 0.2% to trade at USD1,274.40 a troy ounce, while copper for December inched down 0.1% to trade at USD3.147 a pound.
