Silver (SLV) Unable to Rally as Twist Extended
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iShares Silver Trust ETF (NYSE: SLV) is back under pressure again today after comments from the Fed gave a mixed reading. On the one hand, the Fed extended operation twist until the end of the year, but on the other hand they showed an unwillingness to take more aggressive moves to support the economy in the U.S. at this time.
Silver benefits from additional liquidity created by the Fed because it stokes inflation fears. Silver also benefits when investors exit positions held in US dollars. So far the dollar is moving higher following the Fed comments and silver and other metals remain on their back foot. Spot silver is currently at $28/oz. Gold is also lower on the day at 1607/oz. The U.S. dollar index is higher at 88.55.
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Silver benefits from additional liquidity created by the Fed because it stokes inflation fears. Silver also benefits when investors exit positions held in US dollars. So far the dollar is moving higher following the Fed comments and silver and other metals remain on their back foot. Spot silver is currently at $28/oz. Gold is also lower on the day at 1607/oz. The U.S. dollar index is higher at 88.55.
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