Silver futures track gold higher to move further off 34-month low
Investing.com
Published Jul 02, 2013 04:28AM ET
On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.73 a troy ounce during European morning trade, up 0.8% on the day.
Comex silver prices rose by as much as 0.9% earlier in the day to hit a session high of USD19.78 a troy ounce.
Silver futures fell to a low of USD18.18 a troy ounce on June 28, the cheapest level since August 24, 2010.
Silver prices were likely to find support at USD18.19 a troy ounce, the low from June 28 and resistance at USD20.19, the high from June 24.
Silver futures moved higher as bottom fishers snapped up nicely priced positions in wake of recent selloffs.
The precious metal declined nearly 31% in the second quarter, amid speculation the Federal Reserve will start to unwind its bond purchasing program in the coming months.
Sentiment on the precious metal complex has been downbeat in recent months amid growing expectations the Fed will begin to taper off its bond-buying program by the end of this year.
Market players now looked ahead to Friday’s highly-anticipated U.S. nonfarm payrolls data for indications of how the recovery in the U.S. labor market is progressing.
Any improvement in the U.S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase 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 rose 0.6% to trade at USD1,263.25 a troy ounce, while copper for September delivery dipped 0.2% to trade at USD3.151 a pound.
The red metal rallied more than 3% on Monday to hit a two-week high after upbeat manufacturing data out of Europe and the U.S. helped ease concerns over the global economic outlook.
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Written By: Investing.com
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