Upcoming FOMC Meeting Dampens Silver Price

iNVEZZ.com reported that silver was trading down slightly on Monday morning, pressured by uncertainty surrounding the upcoming Federal Open Market Committee (FOMC) meeting.

As quoted in the market news:

Silver for immediate delivery had fallen 0.25 percent, or four cents, to $16.95 as of 06:29 GMT, and was trading over two percent above its 50-day simple moving average of $16.59, having managed to close above the measure during last week for the first time since 1 July. According to Phillip Futures investment analyst Howie Lee, there is speculation in the market that the FOMC may remove the phrase ‘considerable time’ from their monetary policy statement with regard to the timeframe for raising interest rates. If it does this, ‘the indication would be increasingly apparent that a rate hike is on the cards,’ he said.

A hike in US interest rates may reduce demand for zero-yielding assets such as silver.

Click here to read the full iNVEZZ.com report.