Silver Price Reacts Positively to Fed Meeting

iNVEZZ.com reported that the silver price rose Wednesday following the US Federal Reserve’s two-day meeting. The central bank ultimately expressed a more dovish stance on monetary policy than expected.

As quoted in the market news:

The Fed kept the Fed Funds Target Rate unchanged at 0.25 percent, as expected, though the signals in the committee’s statement were more moderate than expected, as the Fed was cautious of ‘more slack in the economy’, citing a slowdown in real economic growth and inflation. Still, the committee’s forward guidance was changed and it no longer says the FOMC would be ‘patient’ in beginning to normalise monetary policy, bringing the US central bank a step closer to hiking rates for the first time in almost a decade.

The statement and speech by Fed chair Janet Yellen hit the dollar, and revived the depressed havens, as investors had expected a stronger commitment towards higher rates.

Silver for immediate delivery was up 0.25 percent to $15.951 per troy ounce as of 05:18 GMT today, with a daily trading range of $15.843 to a two-week high of $16.118. The precious metal was as low as $15.430 yesterday, still near the three-month trough of $15.260, reached last week.

Meanwhile, silver futures for settlement in May, the most traded contract on the COMEX in New York, were up 2.66 percent at $15.955.

Click here to read the full iNVEZZ.com report.