IV:Silver futures rebound as dollar eases, U.S. data ahead
Investing.com - Silver prices regained ground on Wednesday, as the U.S. dollar weakened ahead to the release of key U.S. economic data later in the day to further gauge the strength of the economy and the need for stimulus.
On the Comex division of the New York Mercantile Exchange, silver futures for March delivery traded at USD20.00 a troy ounce during European morning trade, up 0.55%.
Comex silver prices held in a range between USD19.85 a troy ounce and USD20.01 a troy.
The March contract settled 0.17% lower on Tuesday to end at USD19.89 a troy ounce. Comex silver fell to USD19.62 a troy ounce on Monday, the lowest since August 8.
Futures were likely to find support at USD19.62 a troy ounce, the low from November 25 and resistance at USD20.35, the high from November 25.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.1% to trade at 80.56, the lowest since November 20.
Dollar weakness usually benefits silver, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The U.S. was to release data on durable goods orders as well as a report on manufacturing activity in the Chicago region and revised data on consumer sentiment later in the session.
In addition, the Labor Department was to release the weekly report on initial jobless claims one day ahead of schedule due to Thursday’s Thanksgiving holiday.
The release of mixed U.S. economic data on Tuesday did little to shift expectations that the Federal Reserve will start to taper its stimulus program at one of its next few meetings.
Data showed that U.S. consumer confidence unexpectedly fell to seven month low in November, but a separate report showed that the number of building permits issued in the U.S. rose to the highest level in five years in October.
Process of the precious metal are down approximately 35% 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 February delivery rose 0.5% to trade at USD1,247.70 a troy ounce, while copper for March delivery was little changed to trade at USD3.220 a pound.
