The price of silver changed direction and declined during last week. Moreover, gold also declined by a similar rate. Will silver bounce back from its recent fall? Let’s examine the recent news that may affect silver and the silver ETFs.
The recent fall of silver has reflected in the decline in demand for silver ETFs such as iShares Silver Trust (SLV). During the previous week, the Silver Trust’s price fell by 1.6%. Moreover, other Silver investments such as Silver Wheaton (SLW) also dropped by 1.8%. Looking forward, the FOMC meeting, the U.S durable goods, jobless claims, the progress of the U.S equities markets, and the U.S dollar could affect the direction of the price of silver. Let’s analyze these issues and start with FOMC Chair Yellen’s speech from last week.
Yellen and Silver
Last week, Janet Yellen, Chair of the FOMC, gave a speech referring to the FOMC’s policy. She reassured that the Fed won’t push the trigger on raising its cash rate anytime soon: “At present, the Committee anticipates that economic and financial conditions will likely warrant maintaining the current range “for the federal funds rate for a considerable time after (my emphasis with bold marking – LC) the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored”.
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