The price of silver fell during January. Why silver isn’t recovering? What’s up ahead for the silver market? Let’s analyze the recent news that may affect silver (SLV).The drop in silver price has also reflected in the drop in demand for leading silver ETFs such as iShares Silver Trust. During January, the Silver Trust’s silver price decreased by 1.7%. The last FOMC meeting may have contributed to the decline of silver price. Let’s further explore this issue.
FOMC’s monetary policy and U.S economy
Last week, the FOMC decided to taper again QE3 from $75 billion to $65 billion; this news pressured down the price of silver.
The table above shows the silver market’s reaction to the FOMC’s decisions in 2013 and 2014. In the last three meetings, the price of silver tumbled down. If the FOMC continues to cut down its asset purchase program at its current pace, this could adversely affect the price of silver in the short term. But the FOMC might slow down its tapering process. The upcoming non-farm payroll report will be released at the end of this week.
For the rest of the report you can see it at Seeking Alpha
For further reading see:
- Gold and Silver Outlook for February
- Choosing Between Gold and Silver
- Is the Golden Era of Gold Over?
- Will These Gold Producers Bounce Back?
For further reading see: