The price of silver slightly increased in the past week. Despite this modest recovery, silver is still around $19 to $20. Will silver’s recent rally continue? Or will the upcoming release of the minutes of the last FOMC meeting drag down the price of silver? Let’s examine the latest developments in the silver market.
The modest rise in silver has reflected in an increase in the demand for silver ETFs such as iShares Silver Trust (SLV). During the previous week, the Silver Trust’s price rose by 1.03%. Conversely, some other silver related stocks such as Silver Wheaton (SLW) declined by 1.4%.
In recent weeks, the volatility of silver has slightly increased, as indicated in the chart below of the average monthly daily changes in the price of silver.
Despite this slight increase, the volatility is still low compared to the second half of 2013. The volatility is likely to remain low until a new development stirs up the precious metals market. The FOMC could be the one to shake up the silver market.
The FOMC and silver
This week, the FOMC will release the minutes of the recent meeting, which was held at the end of April.
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