Silver, like gold, can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD21.70 a troy ounce during European morning trade, down 0.45% on the day.
Comex silver prices held in a range between USD21.60 a troy ounce, the daily low and a session high of USD21.91 a troy ounce.
Silver prices were likely to find near-term support at USD21.34 a troy ounce, the low from June 10 and resistance at USD22.01, June 10’s high.
Investors remained cautious amid ongoing speculation over whether the Federal Reserve will begin to unwind its easing 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.
But prices remained supported due to a broadly weaker U.S. dollar, as dollar-priced commodities become cheaper to investors holding other currencies when the greenback weakens.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.4% to trade at 80.84, the lowest level since February 21.
The U.S. currency tumbled more than 2% against the yen on Thursday following sharp falls in Japanese equities overnight as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar.
Elsewhere on the Comex, gold for August delivery was down 0.45% to trade at USD1,385.85 a troy ounce, while copper for July delivery lost 1.1% to trade at USD3.190 a pound.
The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.
Any improvement in the U.S. economy could scale back expectations for further easing, putting upward pressure on U.S. yields and boosting the dollar.
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