The price of silver fell again last week. Will silver bounce back? This week several reports will be published that could move silver including: U.S GDP for the second quarter, personal spending expenditures, non-farm payroll and the FOMC will update its monetary policy. Let’s tackle these issues.
During the previous week, the price of silver fell by 1.3%. The silver ETF iShares Silver Trust (SLV) and Pan American Silver (PAAS) also dropped by 0.75% and 2.4%, respectively. Conversely, Silver Wheaton (SLW) inched up by 0.2% during last week.
FOMC and silver
The FOMC will convene for the fifth time this year between July 29th and 30th. The FOMC is expected to taper again its asset purchase program. In the past, the tapering decisions had a strong negative effect on the silver market, as indicated in the table below.
Following the last FOMC meeting, however, the price of silver bounced back after Yellen’s dovish statements in a press conference. This was the first rally silver had this year after an FOMC meeting.
This time, there won’t be a press conference following the meeting. This means, the only decision is likely to be related to the tapering of QE3. Therefore, this event is likely to have a modest (if at all) negative impact on the silver market.
For the rest of the report you can see it at Seeking Alpha
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