Investing.com - Silver prices plunged on Thursday, while gold futures fell to the lowest since June, as news the Federal Reserve will begin reducing its stimulus program next month sent precious metal prices sharply lower.
On the Comex division of the New York Mercantile Exchange, silver futures for March delivery traded at USD19.24 a troy ounce during European morning trade, down 4.05%. Comex silver prices fell by as much as 4.5% earlier in the day to hit a session low of USD19.15 a troy ounce, the weakest level since December 4.
Futures were likely to find support at USD18.89 a troy ounce, the low from December 4 and resistance at USD19.74, the high from December 13.
Silver prices settled 1.1% higher in volatile trade on Wednesday to end at USD20.05 a troy ounce.
Meanwhile, gold futures for February delivery traded at USD1,203.80 a troy ounce, down 2.5%. Comex gold prices fell to a session low of USD1,199.90 a troy ounce earlier, the weakest level since June 28.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28 and resistance at USD1,244.00, the high from December 18.
The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
The move comes after months of uncertainty surrounding the future of the Fed's asset-purchase program. When market players started to anticipate the possibility of a reduction in stimulus early in the summer, it resulted in a sharp selloff in gold prices.
Gold is down approximately 29% this year, while silver lost nearly 37%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, copper for March delivery fell 0.85% to trade at USD3.290 a pound.
On the Comex division of the New York Mercantile Exchange, silver futures for March delivery traded at USD19.24 a troy ounce during European morning trade, down 4.05%. Comex silver prices fell by as much as 4.5% earlier in the day to hit a session low of USD19.15 a troy ounce, the weakest level since December 4.
Futures were likely to find support at USD18.89 a troy ounce, the low from December 4 and resistance at USD19.74, the high from December 13.
Silver prices settled 1.1% higher in volatile trade on Wednesday to end at USD20.05 a troy ounce.
Meanwhile, gold futures for February delivery traded at USD1,203.80 a troy ounce, down 2.5%. Comex gold prices fell to a session low of USD1,199.90 a troy ounce earlier, the weakest level since June 28.
Gold futures were likely to find support at USD1,180.35 a troy ounce, the low from June 28 and resistance at USD1,244.00, the high from December 18.
The Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
The move comes after months of uncertainty surrounding the future of the Fed's asset-purchase program. When market players started to anticipate the possibility of a reduction in stimulus early in the summer, it resulted in a sharp selloff in gold prices.
Gold is down approximately 29% this year, while silver lost nearly 37%, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.
Elsewhere on the Comex, copper for March delivery fell 0.85% to trade at USD3.290 a pound.