Precious metals buyers push silver lower amid profit-taking and higher dollar
Precious metals buyers pushed the price of silver lower on January 25 amid a stronger greenback and profit-taking.
The sentiment of traders was also influenced by speculation surrounding the outcome of a Federal Reserve meeting later in the day, according to Reuters. After holding a two-day meeting, the Federal Open Market Committee plans to issue a statement related to future monetary policy, Forbes reports. The release of the report will be followed by a press conference held by Fed chairman Ben Bernanke.
March silver futures were trading 0.6 percent lower at $31.82 an ounce on the Comex division of the New York Mercantile Exchange, Reuters reports. This caused the price ratio of gold to silver to drop below 52.0.
"It’s all about the dollar," Nick Trevethan, an analyst at Australia & New Zealand Banking Group Ltd, told Bloomberg. "This is the first time the Federal Open Market Committee is giving its forecast, and I think people are keen to see what it looks like."
Another variable that is impacting silver is the greenback. Forbes reports that the U.S. dollar index was higher in morning trading, which could lower the demand of precious metals buyers.
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