Will Silver Break Free from its Current Price Range?

The silver market cooled down in the past couple of weeks as the price of silver remained at $21. But this month, the minutes of the last FOMC meeting and the next meeting could stir up the bullion market.

During last week, the price of silver remained unchanged. Despite this lack of movement some silver investments such Silver Wheaton (SLW) and Pan American Silver (PAAS) have done well last week. These companies’ stocks rose by 2.5% and 2.7%, respectively. Conversely, other silver related assets didn’t do much last week: iShares Silver Trust (SLV) inched down by 0.6%.

U.S labor market continues to improve

Last week’s U.S non-farm payroll report showed a 288,000 gain in number of jobs during June, which was slightly above market expectations. As you can see in the table below, the recent payroll report seems to have contributed to the recent fall in the price of silver.

Looking forward, the FOMC will release the minutes of the last meeting this week (July 9th). And later this month (July 29-30) the FOMC will convene again (this time without a press conference). The minutes could stir up the market if it reveals any additional insight behind the future steps the FOMC will take.

For the rest of the report you can see it at Seeking Alpha

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