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Silver futures rise for first time in 4-days on bargain hunting

Published 09/25/2013, 03:58 AM
Updated 09/25/2013, 03:58 AM

Investing.com - Silver futures rose for the first time in four days on Wednesday, as traders returned to the market to seek cheap valuations in wake of recent losses inflicted by uncertainty regarding the Federal Reserve’s quantitative easing program.

On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD21.74 a troy ounce during European morning trade, up 0.75%.

Silver prices rose by as much as 1.4% earlier in the day to hit a session high of USD21.89 a troy ounce. The December contract ended down 1.25% on Tuesday to settle at USD21.58 a troy ounce.

Silver prices were likely to find support at USD21.22 a troy ounce, the low from September 18 and resistance at USD23.07, the high from September 20.

Silver and other precious metals have been in flux since last week, rising after the Fed surprised markets by not making a tapering announcement and falling as it became evident tapering is not yet entirely off the table.

Silver prices soared by 8% on September 18 after the Fed decided to leave its USD85 billion-a-month stimulus program unchanged.

The decision surprised markets, which had been expecting the central bank to taper its monthly stimulus program by USD10 billion to USD15 billion.

But the precious metal has since lost nearly 6% amid indications that a reduction in U.S. monetary stimulus is still possible by the end of the year.

The Fed will hold its next monetary policy meeting on Oct. 29-30.

Moves in the silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.

The precious metal is on track to post a loss of nearly 29% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.

Elsewhere on the Comex, gold for December delivery rose 0.55% to trade at USD1,323.40 a troy ounce, while copper for December added 0.25% to trade at USD3.264 a pound.

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