Silver Sinks to Five-week Low on Tapering Announcement

iNVEZZ.com reported that following yesterday’s news that the US Federal Reserve will taper its quantitative easing program to $55 billion per month, silver sank to $20.225, a five-week low.

As quoted in the market news:

If the Committee continues with its gradual $10 billion taper-steps per meeting, the asset purchases would be halted this October, which would imply that Yellen expects rate-tightening to start in April 2015. ‘The market isn’t pricing the first hike until August next year’, emphasizes Danske Bank chief analyst Allan von Mehren.

Following the policy decision, US Treasury yields and the greenback have been on the rise, while bullion prices have been hammered from the hawkish surprise by the US central bank. It is worth noting that after the Fed had announced taper-step number two on 29 January, silver found a bottom the very next day.

Click here to read the full iNVEZZ.com report.