Investing.com - Silver futures edged higher on Thursday, regaining some of the previous session’s losses as investors awaited the outcome of a European Central Bank later in the day amid expectations for a rate cut.
Prices remained supported after the Federal Reserve re-affirmed its commitment to leave interest rates unchanged near zero and continue buying USD85 billion in debt each month.
Silver, like gold, can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD23.55 a troy ounce during European morning trade, up 0.9% on the day.
Comex silver prices rose by as much as 1.4% earlier in the day to hit a session high of USD23.67 a troy ounce. Silver prices fell to a one-week low of USD23.22 a troy ounce.
Silver prices were likely to find support at USD23.22 a troy ounce, the previous session’s low and near-term resistance at USD24.52, the high from April 30.
Speculation over a rate cut intensified after recent weak economic data indicated that the economic outlook for the euro zone was deteriorating.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
Elsewhere on the Comex, gold for June delivery rose 0.6% to trade at USD1,454.85 a troy ounce, while copper for July delivery climbed 1% to trade at USD3.112 a pound.
Copper prices fell to an 18-month low on Wednesday, amid concerns over a slowdown in demand from top consumer China.
Prices remained supported after the Federal Reserve re-affirmed its commitment to leave interest rates unchanged near zero and continue buying USD85 billion in debt each month.
Silver, like gold, can benefit from such an environment of easy money because of expectations that ample liquidity would put a damper on the value of paper currencies.
On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD23.55 a troy ounce during European morning trade, up 0.9% on the day.
Comex silver prices rose by as much as 1.4% earlier in the day to hit a session high of USD23.67 a troy ounce. Silver prices fell to a one-week low of USD23.22 a troy ounce.
Silver prices were likely to find support at USD23.22 a troy ounce, the previous session’s low and near-term resistance at USD24.52, the high from April 30.
Speculation over a rate cut intensified after recent weak economic data indicated that the economic outlook for the euro zone was deteriorating.
Data on Tuesday showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
Elsewhere on the Comex, gold for June delivery rose 0.6% to trade at USD1,454.85 a troy ounce, while copper for July delivery climbed 1% to trade at USD3.112 a pound.
Copper prices fell to an 18-month low on Wednesday, amid concerns over a slowdown in demand from top consumer China.