Investing.com - Silver futures fluctuated between modest gains and losses in rangebound trade on Tuesday, as investors continued to speculate over the Federal Reserve’s reported exit strategy from its quantitative-easing program.
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.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD23.63 a troy ounce during European morning trade, down 0.3% on the day.
Comex silver prices held in a range between USD23.58 a troy ounce, the daily low and a session high of USD23.75 a troy ounce.
Silver prices were likely to find support at USD23.15 a troy ounce, the low from May 10 and near-term resistance at USD23.90, May 10’s high.
Silver futures were supported as the U.S. dollar weakened against the euro and the yen, as traders took profits following the dollar’s recent gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 83.23.
Silver prices often move inversely to the U.S. dollar, as the metal becomes less expensive for buyers using other currencies.
The dollar has been buoyed in recent sessions amid growing expectations the Fed will wind down its stimulus program, amid indications of an improving U.S. economic outlook.
On Monday, official data showed that U.S. retail sales unexpectedly rose 0.1% in April.
Market players are now looking ahead to a flurry of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
Any improvement in the U.S. economy could scale back expectations for further easing from the Fed.
Elsewhere on the Comex, gold for June delivery eased up 0.2% to trade at USD1,436.85 a troy ounce, while copper for July delivery tumbled 1.6% to trade at USD3.304 a pound.
Copper futures were under pressure as investors remained concerned over the economic outlook in China.
Official data released Monday showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD23.63 a troy ounce during European morning trade, down 0.3% on the day.
Comex silver prices held in a range between USD23.58 a troy ounce, the daily low and a session high of USD23.75 a troy ounce.
Silver prices were likely to find support at USD23.15 a troy ounce, the low from May 10 and near-term resistance at USD23.90, May 10’s high.
Silver futures were supported as the U.S. dollar weakened against the euro and the yen, as traders took profits following the dollar’s recent gains.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.2% to trade at 83.23.
Silver prices often move inversely to the U.S. dollar, as the metal becomes less expensive for buyers using other currencies.
The dollar has been buoyed in recent sessions amid growing expectations the Fed will wind down its stimulus program, amid indications of an improving U.S. economic outlook.
On Monday, official data showed that U.S. retail sales unexpectedly rose 0.1% in April.
Market players are now looking ahead to a flurry of U.S. economic data later in the week, including reports on industrial production, housing starts, inflation and economic sentiment.
Any improvement in the U.S. economy could scale back expectations for further easing from the Fed.
Elsewhere on the Comex, gold for June delivery eased up 0.2% to trade at USD1,436.85 a troy ounce, while copper for July delivery tumbled 1.6% to trade at USD3.304 a pound.
Copper futures were under pressure as investors remained concerned over the economic outlook in China.
Official data released Monday showed that industrial production in China rose 9.3% in April, below expectations for a 9.5% increase and following an 8.9% rise the previous month.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.