IV:Silver futures fall more than 1% amid Fed uncertainty
Investing.com - Silver futures lost more than 1% on Tuesday, tracking gold prices lower amid concern the Federal Reserve may scale back its aggressive easing policy in the coming months.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD21.67 a troy ounce during European morning trade, down 1.15% on the day.
Comex silver prices fell by as much as 1.6% earlier in the session to hit a daily low of USD21.57 a troy ounce.
Silver prices were likely to find support at USD21.13 a troy ounce, the low from May 20 and resistance at USD22.75, the high from June 7.
Speculation that the Fed will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.
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.
Silver, like gold, can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
Elsewhere on the Comex, gold for August delivery dropped 1% to trade at USD1,372.35 a troy ounce, while copper for July delivery fell 0.9% to trade at USD3.212 a pound.
