IV:Silver futures edge lower on Fed minutes, U.S. debt ceiling hopes
Investing.com - Silver futures edged lower on Thursday, after the minutes of the Federal Reserve’s latest meeting showed that most policymakers were still in favor of scaling back its stimulus program this year.
Investors continued to monitor negotiations over a U.S. budget impasse that has kept the federal government shut down since October 1.
On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD21.82 a troy ounce during European morning trade, down 0.35%.
Silver prices held in a range between USD21.77 a troy ounce, the daily low and a session high of USD22.00 a troy ounce.
The December contract ended 2.46% lower on Wednesday to settle at USD21.89 a troy ounce.
Silver prices were likely to find support at USD21.50 a troy ounce, the low from October 4 and resistance at USD22.50, the high from October 8.
Minutes from the Federal Reserve’s September policy meeting published Wednesday showed that the central bank's decision not to begin tapering its USD85-billion-a-month bond-buying program was a "close call."
The Fed took markets by surprise last month with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
The U.S. government shutdown has halted the release of key economic data over the past week, including September’s nonfarm payrolls report, fuelling speculation the Fed will hold off on any move to scale back its easing program.
The central bank is scheduled to meet October 29-30 to review the economy and assess policy.
On Wednesday, President Barack Obama announced his nomination of Federal Reserve Vice Chairwoman Janet Yellen as the new Chair of the central bank, replacing Ben Bernanke, who steps down in early 2014.
Meanwhile, investors assessed the potential for an agreement to raise the U.S. debt ceiling and avert default.
House Republican leaders were to hold their first meeting with President Obama since the shutdown began later in the day.
The U.S. risks a sovereign debt default if the government borrowing limit is not raised by 17 October.
Elsewhere on the Comex, gold for December delivery dipped 0.5% to trade at USD1,300.70 a troy ounce, while copper for December fell 0.2% to trade at USD3.226 a pound.
