Investing.com - Silver futures were higher on Thursday, bouncing off the lowest level since August 2010 after a downward revision to U.S. first quarter growth dampened expectations that the Federal Reserve could begin to unwind its asset purchase program later this year.
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.
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD18.75 a troy ounce during European morning trade, up 0.75% on the day.
Comex silver prices rose by as much as 1.8% earlier in the day to hit a session high of USD18.95 a troy ounce.
Silver futures tumbled more than 5% on Wednesday to hit a low of USD18.39 a troy ounce, the cheapest level since August 25, 2010.
Silver prices were likely to find near-term support at USD18.42 a troy ounce, the previous session’s low and resistance at USD19.40, the high from August 31, 2010.
The Commerce Department said Wednesday that U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.
The disappointing data eased fears the Fed will begin to taper its bond purchase program in the coming months.
Silver prices lost 9% last week after Fed Chairman Ben Bernanke said that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up.
The U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales later Thursday.
Elsewhere on the Comex, gold for August delivery rose 0.7% to trade at USD1,238.65 a troy ounce. On Wednesday, gold prices slumped more than 4% to touch a low of USD1,221.55 a troy ounce, the weakest level since August 24, 2010.,
Meanwhile, copper for September delivery added 0.7% to trade at USD3.061 a pound.
The red metal found support after official data showed that profits at China’s industrial companies jumped 15.5% in May from a year earlier, higher than April’s 9.3% gain.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
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.
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD18.75 a troy ounce during European morning trade, up 0.75% on the day.
Comex silver prices rose by as much as 1.8% earlier in the day to hit a session high of USD18.95 a troy ounce.
Silver futures tumbled more than 5% on Wednesday to hit a low of USD18.39 a troy ounce, the cheapest level since August 25, 2010.
Silver prices were likely to find near-term support at USD18.42 a troy ounce, the previous session’s low and resistance at USD19.40, the high from August 31, 2010.
The Commerce Department said Wednesday that U.S. gross domestic product expanded at an annual rate of 1.8% in the three months to March, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.
The disappointing data eased fears the Fed will begin to taper its bond purchase program in the coming months.
Silver prices lost 9% last week after Fed Chairman Ben Bernanke said that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up.
The U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales later Thursday.
Elsewhere on the Comex, gold for August delivery rose 0.7% to trade at USD1,238.65 a troy ounce. On Wednesday, gold prices slumped more than 4% to touch a low of USD1,221.55 a troy ounce, the weakest level since August 24, 2010.,
Meanwhile, copper for September delivery added 0.7% to trade at USD3.061 a pound.
The red metal found support after official data showed that profits at China’s industrial companies jumped 15.5% in May from a year earlier, higher than April’s 9.3% gain.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.