A slightly firmer dollar maintained a negative tone surrounding silver on Wednesday with prices also pulled lower by a sharp dip in gold prices during the New York session.
Silver prices were unable to make any fresh impression on resistance levels in US trading on Tuesday, as overall sentiment remained cautious.
The latest Federal Reserve discount rate minutes recorded that 8 of the 12 regional Fed banks called for a discount rate increase in July from 6 at the previous meeting. This is a strong signal that regional banks are pushing for a hike and the Governors will be under pressure to respond.
Dallas Fed President Kaplan stated that a rate increase was warranted if the favourable job trend continues and that a rate rise was approaching.
Despite the relatively hawkish tone of Fed rhetoric, there was no significant shift in Fed Funds futures and no significant upward pressure on US yields with benchmark 10-year yields holding close to 1.55%. Given the absence of these pressures, silver was also resilient and fluctuated around the $19.00 level.
Prices drifted marginally lower in the Asian and European sessions on Wednesday as the dollar secured a small-scale advance against the Euro, although overall movement was limited with volatilities tended to diminish across most asset classes amid weak trading volumes.
There was a sharp drop in China’s July silver and platinum imports, which had some negative impact across the precious metals complex.
US existing home sales