Silver falls by more than gold as precious metals buyers look to Fed testimony

Silver prices declined by more than that of gold on July 16, as precious metals buyers were impacted by speculation surrounding testimony that U.S. Federal Reserve Chairman Ben Bernanke will give to Washington lawmakers.

Silver was trading 1.3 percent lower at $26.96 per ounce at 12:15 GMT, according to Reuters. Spot gold was 0.6 percent lower at $1,580.16 an ounce, while August gold futures were down $11.90 per ounce at $1,580.10 on the Comex division of the New York Mercantile Exchange.

Bloomberg reports that silver for immediate delivery was trading 0.7 percent lower at $27.14 an ounce.

The silver holdings of iShares Silver Trust, the largest silver-backed exchange traded fund, dropped by 33.2 tons on Friday, July 13, according to Reuters. This change in holdings represented the largest one-day decline since the beginning of July.

"Right now, after the latest (Fed) meeting at the end of June and the disappointment there, I'm not pricing in any QE3 factor before the U.S. elections," LGT Capital Management analyst Bayram Dincer stated, the media outlet reports.