Silver fluctuates amid U.S. budget uncertainty, Italy political woes

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Investing.com - Silver futures swung between small gains and losses on Monday, as market sentiment was hit amid growing fears over a possible U.S. government shutdown and renewed concerns over political instability in Italy.

On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD21.87 a troy ounce during European morning trade, up 0.2%.

Silver prices traded in a range between USD21.62 a troy ounce, the daily low and a session high of USD22.10 a troy ounce. The December contract ended up 0.3% on Friday to settle at USD21.83 a troy ounce.

Silver prices were likely to find support at USD21.22 a troy ounce, the low from September 18 and resistance at USD23.07, the high from September 20.

Political wrangling in Washington over funding for President Barack Obama's healthcare law continued over the weekend, fuelling fears over the prospect for a U.S. government shutdown.

Congress must pass a short-term budget by midnight on Monday in order to keep the government open.

Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.

Market sentiment was also hit amid renewed concerns over political instability in Italy.

The euro came under pressure after Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta's coalition government and called for fresh elections to be held.

Also Monday, data showed that China's HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world's second largest economy remains fragile.

Economists had expected an unchanged reading.

Elsewhere on the Comex, gold for December delivery rose 0.2% to trade at USD1,341.90 a troy ounce, while copper for December added 0.1% to trade at USD3.334 a pound.

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This article appears in: Investing , Forex and Currencies

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