Silver rises to two-month high after Fed statement
Silver prices increased to their highest point in two months, following gold higher as the demand of precious metals buyers responded to the Federal Reserve Bank's announcement on interest rates. The falling dollar also contributed to the purchasing behavior of these market participants.
March silver futures trading on the Comex division of the New York Mercantile Exchange rose to $33.79 per ounce, the highest value since November 17, according to Bloomberg. The contract later retreated from this two-month high to reach $33.743. April gold futures rose to as high as $1,734.50, which was the highest point for a most-traded contract since December 8.
Reuters reports that the dollar index, which compares the value of the greenback to six of its peers, dropped to as low as 79.357, its lowest point in five weeks.
The market for precious metals was influenced by the recent Federal Reserve announcement that the central bank will not increase interest rates until at least late 2014. This statement served as a boon to gold, David Meger, the director of metal trading at Vision Financial Markets in Chicago, told Bloomberg in a telephone interview.
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