Silver Spot Price: Shedding Yesterday’s Gains

on Sep 20, 2013
Updated: Feb 25, 2022
Listen Friday, September 20th: Silver is well down today after yesterday’s rally, seemingly on post-Fed decision profit-taking.

Silver prices have tumbled during European afternoon trading, with silver for immediate delivery down 1.83 percent at $22.65 an ounce and December futures down 2.67 percent at $22.67 an ounce as of 14.51 BST. Spot silver was locked into a range of between $22.45 and $23.16 as of 15.04 BST.
Demand for silver exchange-traded funds has been strong so far during the year and remains so. The world’s biggest ETF yesterday reported inflows of nearly 105 tonnes, the biggest one-day rise in its holdings since late July.

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Silver prices rallied for two consecutive days through Wednesday and yesterday after Ben Bernanke’s announcement that the Federal Reserve would not start tapering its $85 billion a month commodities-friendly bond-buying scheme, known as quantitative easing. Bernanke again stressed that the stimulus programme was “not on a pre-set course.”

“The market will take some time to digest the ‘no-taper’ surprise,” said Victor Thianpiriya, an ANZ Bank analyst in Singapore, as quoted by Reuters.
Analysts had broadly expected that the FOMC would decide during its two-day meeting on Tuesday and Wednesday to start scaling back its monetary stimulus programme by between $5 and $10 billion.
The next scheduled FOMC meeting is on October 29- 30, when an announcement of chairman Ben

Bernanke’s successor is expected to be made. Incumbent vice-chair Janet Yellen, who is seen as a supporter of the stimulus plan, is the leading candidate for the job.
!m[Markets Adjusting to ‘No-Taper’ Surprise](/uploads/story/5622/thumbs/pic1_inline.jpg)
In a client note, OCBC Bank observed: “The prospect of any tapering this October remains data-dependent, and speculative interest may remain soft as investors continue to play a wait-and-see game for incoming U.S.-centric economic data.” And Reuters quoted Societe Generale analyst Robin Bhar as saying that “tapering may not have been announced on Wednesday, but it is coming”.
**As of 15.30 BST on the Comex division of the NYMEX, the silver spot price was at $22.56 an ounce, down 2.22 percent, while December futures were at $22.58 an ounce, 3.06 percent lower.**
**Platinum was being spot traded 1.25 percent down at $1,446.25 an ounce as of 15.30 BST.**