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Silver futures fall ahead of FOMC meeting

Published 12/17/2013, 04:41 AM
Silver prices edge lower before Fed
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Investing.com - Silver prices declined on Tuesday, as investors awaited a Federal Reserve meeting due to start later in the day to gauge the timing of stimulus cuts.

On the Comex division of the New York Mercantile Exchange, silver futures for March delivery traded at USD19.96 a troy ounce during European morning trade, down 0.65%. Comex silver prices traded in a range between USD19.87 a troy ounce and USD20.22 a troy ounce.

Futures were likely to find support at USD19.28 a troy ounce, the low from December 13 and resistance at USD20.34, the high from December 12.

Silver prices rallied 2.54% on Monday to settle at USD20.10 a troy ounce.

Investors remained cautious ahead of the outcome of the Fed’s two-day policy meeting on Wednesday, with some expecting the central bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.

Markets were turning their attention to U.S. inflation data due out later in the session amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.

Silver is down approximately 35% this year, as solid U.S. economic data underlined expectations the Fed will begin curbing stimulus.

Elsewhere on the Comex, gold for February delivery shed 0.45% to trade at USD1,239.00 a troy ounce, while copper for March delivery inched down 0.1% to trade at USD3.327 a pound.

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