Silver followed golds trend and and hit a one-week high today supported by the weaker dollar. The greenback lost positions versus the Japanese yen and euro yesterday, thus shooting gold and silver prices up. On the New York Mercantile Exchange silver futures for July delivery were up 0,95% on the day and traded at $22.66 an ounce.
The greenback lost positions against the yen, which lead to a decrease in its value against all other major peers. The dollar index was down 0,3% and traded at 83.41, lowest since May 14.
Dollar and silver tend to trade inversely. Weakness in the U.S. currency generally drives dollar-priced commodities up as they become more attractive to investors and are cheaper for foreign currency holders.
Market players have been speculating on shifting expectations about а sooner-than-expected slowdown of the Quantitative Easing program. May 22 Ben Bernanke, Fed chairman, said the central bank may scale back its monetary easing measures in the next few meetings, if the labor market improves further. He said the Quantitative Easing program is currently providing “significant benefits”. Meanwhile at the release of the Fed minutes the same day it came to notice that some policy makers think the stimulus measures should be scaled down in June.
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