Investing.com - Silver prices fell to a one-week low on Wednesday, while gold also declined, as prospects of further stimulus tapering by the Federal Reserve weighed on the precious metals.
On the Comex division of the New York Mercantile Exchange, silver futures for March delivery traded at USD19.52 a troy ounce during European morning trade, down 1.3%. Comex silver prices fell by as much as 1.7% earlier in the day to hit a session low of USD19.44 a troy ounce, the weakest level since December 31.
The March contract ended Tuesday's session 1.57% lower at USD19.78 a troy ounce. Futures were likely to find support at USD19.13 a troy ounce, the low from December 20 and resistance at USD20.27, the high from January 7.
Meanwhile, gold futures for February delivery traded at USD1,224.00 a troy ounce, down 0.45%. The March contract settled 0.68% lower on Tuesday to end at USD1,229.90 a troy ounce.
Tuesday's losses came after data showed that the U.S. trade deficit shrank to the lowest level in four years in November, as exports to China rose to a record high.
Investors were now turning their attention to the minutes of the Fed's December meeting, due for release later Wednesday, for indications on the possible timing of further reductions in the central bank's stimulus program.
Traders were also awaiting the release of the ADP report on private sector job creation later in the day, a key indicator ahead of Friday's nonfarm payrolls report, for indications of the strength of the recovery in the labor market.
The Fed started to reduce its monthly bond-buying program by USD10 billion this month. Some market participants believe the central bank will likely taper its bond purchases by an additional USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy.
Elsewhere on the Comex, copper futures for March delivery dipped 0.05% to trade at USD3.357 a pound.
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