Silver prices recover from losses, up 1% as metals gain

Investing.com - Silver futures regained strength on Tuesday, tracking gains across the metals complex after Federal Reserve officials played down fears over an imminent end to the central bank’s stimulus program.

On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.76 a troy ounce during European morning trade, up 1.2% on the day.

Comex silver prices rose by as much as 1.5% earlier in the day to hit a session high of USD19.81 a troy ounce.

Silver prices were likely to find near-term support at USD19.26 a troy ounce, the low from September 1, 2010 and resistance at USD20.51, the high from September 14, 2010.

On Monday, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said the central bank was committed to continuing its bond purchase program until the U.S. unemployment rate falls further.

Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone.

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.

Comex silver prices plunged to USD19.31 a troy ounce on June 21, the weakest level since September 2, 2010.

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 0.8% to trade at USD1,287.05 a troy ounce, while copper for September delivery rallied 1.2% to trade at USD3.065 a pound.

The industrial metal fell to a three-year low of USD2.986 a pound earlier in the session, before turning higher after China’s central bank sought to reassure investors that liquidity would be kept at an appropriate level to support growth.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.