Silver slides to 4-week low following taper
London (Jan 31) Silver has declined to its lowest level in four weeks in commodities markets today (January 30th), with investors reacting to the Federal Reserve's decision to further taper its quantitative easing programme.
The US central bank announced yesterday that it is to reduce its monthly asset purchases by an additional $10 billion, citing encouraging growth in the world's largest economy.
In addition, the Fed reiterated its statement that interest rates are likely to remain close to zero even after its unemployment target of 6.5 per cent is achieved.
Silver for March delivery declined to a session low of $19.28 per ounce on the Comex division of the New York Mercantile exchange, which is the future's lowest level since December 31st.
The precious metal later stabilised at $19.39 per ounce - down by 0.8 per cent for the session - and this comes after the contract added 0.25 per cent yesterday.
Later today, official fourth quarter US economic growth figures are due to be published, as well as a report on pending home sales and initial jobless claims data.