Investing.com - Silver prices were lower on Wednesday, as growing speculation that the Federal Reserve will make a further reduction in monetary stimulus at its next policy meeting at the end of the month weighed.
On the Comex division of the New York Mercantile Exchange, silver for March delivery shed 0.2% to trade at USD19.83 a troy ounce during European morning trade. Comex silver prices held in a range between USD19.77 a troy ounce and USD19.93 a troy ounce.
The March contract fell to USD19.65 a troy ounce on Tuesday, the lowest since January 10, before trimming losses to settle at USD19.87, down 2.14%
Silver futures were likely to find support at USD19.54 a troy ounce, the low from January 10 and resistance at USD20.43, the high from January 21.
Meanwhile, gold futures for February delivery traded at USD1,239.20 a troy ounce, down 0.25%. Gold prices traded in a range between USD1,237.90 a troy ounce and USD1,243.40 a troy ounce.
The February contract fell to USD1,235.10 a troy ounce on Tuesday, the lowest since January 15, before paring losses to settle at USD1,241.80, down 0.81%.
Futures were likely to find near-term support at USD1,233.50 a troy ounce, the low from January 15 and resistance at USD1,262.00, the high from January 21.
Demand for the U.S. dollar was underpinned by expectations that the Fed will continue tapering its stimulus program at the outcome of its next policy meeting on January 29 to USD65 billion from the current USD75 billion.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.1% to trade at 81.28.
A stronger U.S. dollar usually weighs on gold and silver as it dampens the metals’ appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, copper futures for March delivery fell 0.45% to trade at USD3.337 a pound.