Silver down from 5-week highs on profit-taking
London (Jan 13) Silver has turned lower in commodities markets today (January 13th), as traders looked to book profits after the metal hit a five-week high.
On Friday, the contract for March delivery on the New York Mercantile Exchange closed 2.74 per cent higher, following the release of the December US non-farm payrolls report.
This showed employers in the country added just 74,000 new jobs last month, compared to expectations for a 193,000 gain. As a result, doubts have been cast over the Federal Reserve's plans to continue reducing its quantitative easing programme, boosting metal prices.
After reaching its highest level since December 11th earlier in the session, silver for settlement in March quickly shed 0.75 per cent to $20.07 per ounce in electronic trading on the Comex.
The Fed is set to meet January 28th-29th to discuss further tapering of its stimulus and expectations of continued asset purchases will likely benefit silver prices, as precious metals are generally seen as a solid store of value and hedge against inflation