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Silver futures rally 1% ahead of Federal Reserve decision

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Investing.com - Silver futures were higher on Wednesday, as market players looked ahead to the outcome of the Federal Reserve's highly anticipated policy statement due later in the trading session.

On the Comex division of the New York Mercantile Exchange, silver futures for September delivery traded at USD19.90 a troy ounce during European morning trade, up 1.1%.

The September contract settled down 0.95% at USD19.68 a troy ounce on Tuesday.

Silver prices were likely to find support at USD19.29 a troy ounce, the low from July 19 and resistance at USD20.29, the high from July 26.

Market players were looking ahead to the Fed's upcoming policy statement due later in the day on hopes the central bank could offer more clues on when it could slow the pace of its monthly bond purchases.

In addition, traders are awaiting the release of U.S. growth figures for the second quarter scheduled for later in the session for indications of how the economic recovery is progressing.

Any improvement in the U.S. economy was likely to reinforce the view that the Federal Reserve will begin to taper its bond purchase program in the coming months.

Moves in the silver price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its bond-buying program sooner-than-expected.

Silver prices are on track to post a loss of almost 34% on the year, amid speculation the Fed will start to unwind its bond purchasing program in the coming months.

Elsewhere on the Comex, gold for December delivery rose 0.6% to trade at USD1,333.25 a troy ounce, while copper for September delivery jumped 1.2% to trade at USD3.080 a pound.

The red metal edged higher on hopes policy makers in China will introduce fresh easing measures to boost growth in the world's second largest economy.

China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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