Silver Prices Trade at Three-Week Highs as Markets Await Fed, Data

London (July 24)  Silver prices extended three-week highs Monday, as investors set their sights on a deluge of market-moving events in the coming days.

September silver futures edged up 4 cents, or 0.3%, to $16.50 a troy ounce at 7:33 a.m. ET. Prices traded within a narrow range through the overnight session, fluctuating between $16.45 and $16.53. Silver is on track for its seventh consecutive advance and tenth of the past 11 days.

Gold prices rose to more than one-month highs following a week’s worth of gains. The December futures contract was little changed at $1,262.00 a troy ounce.

Precious metals are being underpinned by a softer U.S. dollar, which is trading at 11-month lows against a basket of major currencies. The dollar index (DXY) closed at 93.86 on Friday, reflecting a year-to-date loss of 8.2%. The index was little changed on Monday.

In policy, the Federal Open Market Committee (FOMC) will coalesce in Washington Tuesday for a two-day meeting. The official rate announcement will be made Wednesday at 2:00 p.m. ET. Although no change in the benchmark rate is expected, the official statement may provide direction on the future of monetary policy, including the Fed’s plan to unwind its massive $4.5 trillion balance sheet.

In terms of data, the Commerce Department will report on durable goods orders Thursday followed by an advance estimate of second-quarter GDP on Friday. The economy likely grew 2.6% annually in the second quarter, based on a median estimate of economists.

The U.S. economy expanded just 1.4% annually in the first quarter, and that was after two upward revisions.

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