Investing.com - Silver futures extended gains from the previous session on Tuesday, as bargain hunters continued to snap up nicely priced positions in wake of recent selloffs.
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.35 a troy ounce during European morning trade, up 1.7% on the day.
Comex silver prices rose by as much as 2.3% earlier in the session to hit a daily high of USD19.48 a troy ounce, the strongest level since July 5.
Silver prices were likely to find support at USD18.18 a troy ounce, the low from June 28 and a 34-month low and near-term resistance at USD19.58, the high from July 5.
Silver futures found support after data showed that inflation in China accelerated at a faster rate than expected last month.
Official data released earlier showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.
Silver, like gold, is considered a hedge against inflation risk and gold prices tend to keep in step with consumer price increases.
Investors are now looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.
Silver futures plunged 4.5% on Friday after the Department of Labor said the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.
Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
Silver prices are on track to post a loss of almost 36% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months.
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.
Elsewhere on the Comex, gold for August delivery added 1.6% to trade at USD1,255.05 a troy ounce, while copper for September delivery shed 0.35% to trade at USD3.088 a pound.
The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.35 a troy ounce during European morning trade, up 1.7% on the day.
Comex silver prices rose by as much as 2.3% earlier in the session to hit a daily high of USD19.48 a troy ounce, the strongest level since July 5.
Silver prices were likely to find support at USD18.18 a troy ounce, the low from June 28 and a 34-month low and near-term resistance at USD19.58, the high from July 5.
Silver futures found support after data showed that inflation in China accelerated at a faster rate than expected last month.
Official data released earlier showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.
Silver, like gold, is considered a hedge against inflation risk and gold prices tend to keep in step with consumer price increases.
Investors are now looking ahead to Wednesday's minutes of the Federal Reserve's June meeting, for further hints regarding the direction of U.S. monetary policy.
Silver futures plunged 4.5% on Friday after the Department of Labor said the U.S. economy added 195,000 jobs in June, more than the 165,000 increase forecast by economists.
Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
Silver prices are on track to post a loss of almost 36% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months.
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.
Elsewhere on the Comex, gold for August delivery added 1.6% to trade at USD1,255.05 a troy ounce, while copper for September delivery shed 0.35% to trade at USD3.088 a pound.
The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world’s second largest economy.