Silver futures edge lower on Fed uncertainty

November 18, 2013

London (Nov 18)  Silver prices edged lower on Monday, as ongoing uncertainty over the direction of U.S. monetary policy kept investors in a cautious mood.

On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD20.64 a troy ounce during European morning trade, down 0.4%.

Comex silver prices traded in a range between USD20.61 a troy ounce, the daily low and a session high of USD20.79.

The December contract inched up 0.02% on Friday to settle at USD20.72 a troy ounce.

Futures were likely to find support at USD20.41 a troy ounce, the low from November 13 and resistance at USD20.88, the high from November 14.

Weaker-than-expected U.S. economic data on Friday rekindled expectations that the Fed will delay plans to taper its stimulus program in the near-term.

The Empire state manufacturing index fell to -2.21 from 1.52 in October. Economists had forecast a rise to 5.0.

A separate report showed that U.S. industrial production fell 0.1% in October, after rising by 0.7% in September, compared to expectations for a 0.2% increase.

Comments by Fed Chairwoman nominee Janet Yellen last week were seen as reiterating the need for continued stimulus to ensure a robust economic recovery.

Investors were turning their attention to the minutes of the Fed’s October meeting, as well as a speech by Fed Chairman Ben Bernanke on Wednesday for further indications on the future course of U.S. monetary policy.

Silver prices are down approximately 32% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchasing program.

Elsewhere on the Comex, gold for December delivery shed 0.35% to trade at USD1,282.90 a troy ounce, while copper for December inched down 0.2% to trade at USD3.165 a pound

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