Silver futures move higher ahead of FOMC policy decision

LONDON (July 31) Silver futures edged higher on Wednesday, as market players looked ahead to the outcome of the Federal Reserve's highly anticipated policy statement due later in the trading session.  Markets were looking ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank could offer more clues on when it could slow the pace of its monthly bond purchases.

In addition, traders are awaiting the release of U.S. growth figures for the second quarter scheduled for later in the session for indications of how the economic recovery 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 precious metal prices this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.  On the Comex, silver for September delivery rose 0.8% to trade at USD19.83 a troy ounce, while copper for September delivery rallied 1.1% to trade at USD3.075 a pound.

The red metal edged higher on hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy.