Silver Prices Open Flat as Post-FOMC Gains Slow

Silver prices were little changed on Monday, as prices hovered within a narrow range ahead of a potentially active week in the markets.

May silver futures were trading at $17.42 a troy ounce at 7:43 a.m. ET, little changed from their previous close. The futures contract fluctuated within a narrow range of $17.40 and $17.48 overnight.

The grey metal is riding a three-day winning streak in the aftermath of the Federal Reserve’s decision to raise interest rates. The ‘buy the rumour, sell the fact’ event sent precious metals soaring as the U.S. dollar fell. The two asset groups had trended in the opposite direction in the weeks leading up to the Fed meeting, a sign that a rate hike was already priced into the markets.

Silver is up nearly 3% since March 15.

April gold futures were up $1.50, or 0.1%, at $1,231.70 a troy ounce Monday morning. Bullion rose as much as 0.4% overnight.

The dollar index edged down 0.1% to 100.24 early Monday.

There are no major economic calendar events planned at the start of the week. Chicago Fed President Charles Evans will deliver a speech at the New York National Association for Business Economics later this afternoon. Evans is a voting member of the Federal Open Market Committee (FOMC) this year.

Fed speakers will make headlines all week long, with Chair Janet Yellen set to deliver a speech on Thursday.

In terms of upcoming data releases, the National Association of Realtors (NAR) will report on existing home sales on Wednesday, followed by a government report on new home sales.

On Friday, the Commerce Department will report on February durable goods orders. IHS Markit will release its monthly PMI Composite Index the same day.

Comex Silver Futures (May 2017)

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Sam Bourgi is a financial market analyst for economiccalendar.com. He has more than six years of progressive experience in economic and financial analysis, research consulting and sectoral analysis. As a published author in government, peer-reviewed, online and industry sources, he has developed a fundamental approach to the financial markets with a broad focus on stock indices, commodities and the technology sector. He earned his Bachelor’s Degree from the University of Windsor and Master’s degree from McMaster University.