Silver Trades in Narrow Range as Markets Wait for Fed Minutes

Silver prices eased in a tight range on Wednesday as the U.S. dollar firmed and investors positioned for the release of the Federal Reserve’s latest monetary policy meeting minutes later in the day.

Spot gold (Yellow Metal) fell 0.2% to $1,921.89 per ounce by 0652 GMT, while U.S. gold futures (Yellow Metal) were flat at $1,929.10.

The dollar index (DXY) held firm, making bullion less attractive for overseas buyers.

“Fed minutes are likely to reveal a lively debate where still more rate hikes are to come. This could cause some softness in gold in the very short term, but medium to long term seekers of security will be buying any dip,” said Clifford Bennett, chief economist at ACY Securities.

The Federal Open Market Committee (FOMC) will issue minutes from its June 13-14 meeting at 1800 GMT. The world’s major central banks delivered the biggest number of monthly interest rate hikes year-to-date in June, surprising markets and flagging more tightening ahead as policy makers grapple to get the upper hand in the battle against inflation.

Gold may broadly trade inside the $1,870-$1,942 an ounce level initially post the minutes, but once it breaks out on either side of the range, it would set a fresh short-term directional move.

High interest rates discourage investing in non-yielding gold, which is otherwise seen as a safe investment amid economic uncertainties.

However, the ongoing discord between the United States and China seeks to remind investors, “having a little gold in one’s portfolio remains advisable,” Bennett further said, adding gold still looks capable of achieving new highs by years end even after the recent correction.

Meanwhile, services activity of top bullion consumer China expanded at the slowest pace in five months in June, a private-sector survey showed on Wednesday.

Spot silver (XAGUSD) fell 0.7% to $22.8007 per ounce, platinum (PL) shed 0.2% to $913.16, and palladium (XXPDUSD) dropped 0.9% to $1,232.04.

Front Month Comex Silver for July delivery gained 8.60 cents per troy ounce, or 0.38% to $22.896 today

  • Up for two consecutive sessions
  • Up 30.50 cents or 1.35% over the last two sessions
  • Largest two day dollar and percentage gain since Tuesday, June 27, 2023
  • Up four of the past six sessions
  • Off 12.06% from its 52-week high of $26.035 hit Thursday, May 4, 2023
  • Up 30.45% from its 52-week low of $17.551 hit Thursday, Sept. 1, 2022
  • Rose 16.83% from 52 weeks ago
  • Off 12.06% from its 2023 settlement high of $26.035 hit Thursday, May 4, 2023
  • Up 14.45% from its 2023 settlement low of $20.005 hit Wednesday, March 8, 2023
  • Off 52.99% from its record high of $48.70 hit Thursday, Jan. 17, 1980
  • Year-to-date it is down 96.60 cents or 4.05%

All prices are calculated based on the settlement price of the current front month contract.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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