The price of silver remained nearly unchanged during last week. On the other hand, gold bounced back following the release of the minutes of the last FOMC meeting. Will silver resume its rally anytime soon? Or will it tumble down? Let’s analyze the recent news that may affect silver and the silver ETFs.
The stagnation of silver has reflected in the little change in demand for silver ETFs such as iShares Silver Trust (SLV). During last week, the Silver Trust’s price inched up by 0.16%. Conversely, other Silver investments such as Silver Wheaton (SLW) continued their descent and dropped by 2.2%. Looking forward, Janet Yellen’s speech, the U.S retail sales, Philly Fed index, the progress of gold, and the U.S dollar could affect silver. Let’s examine these issues and start with last week’s release of the minutes of the last FOMC meeting.
The minutes of the FOMC and silver
Following the latest FOMC meeting, in which the FOMC decided to taper again its asset purchase program. In the press conference, which accompanied the statement of the meeting, FOMC Chair Janet Yellen hinted that the FOMC could raise its cash rate by mid-2015 – nearly a year from now. This news dragged down the price of silver. But the minutes of that meeting eased down these speculations. They showed that FOMC members remain dovish and the timing of raising the Federal Reserve interest rate isn’t clear.
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