Silver futures fell today to bounce from the highest since September 30, 2016 aas US dollar rose in line with the inverse relation between them, and ahead of major economic data releases by the US economy today, especially the FOMC meeting and a press conference by Fed Chairman Jerome Powell.
As of 05:33 GMT, silver futures (December delivery) fell by 0.50% to $18.01 an ounce, from the opening of $18.10, after opening today on bearish price gap as it closed yesterday at $18.14, while the dollar index rose by 0.10% to 98.30 points from the opening of 98.21.
The markets are anticipating the release of the US housing market data with the release of the building permits reading for August, with forecasts to fall by 1.3% to 1.31 million vs. a rise by 8.4% to 1.32 million in July. the housing starts reading may show a rise of 5.0% to 1.25 million vs. a decline of 4.0% to 1.19 million in July.
The US Fed meeting will unveil its forecasts on growth, inflation and unemployment rates as well as the future of interest rates for the next three years later today, and will be followed by Fed Chairman Jerome Powell will holding a press conference tomorrow after the meeting, to comment on the bank's decisions which has recently been criticized by President Trump, as he wants the interest rates to be cut to zero or below.
Ahead of the BOJ meeting in Tokyo on thursday and will be followed by a press conference from the bank's chairman Haruhiko Kuroda, with forecasts that if the US Fed cut interest rates that may put pressure on the BOJ to increase stimulus, which comes after the ECB has cut interest rates by 10 basis points to minus -0.50% and the relaunch of 20 billion euros bond-buying program by November.
President Trump also said earlier this week that the US has reached preliminary trade agreements with Japan, ahead of a new round of the US-China trade talks in Washington next Thursday.
Otherwise, President Trump accused Iran of the attacks on Monday, despite the Houthis rebels in Yemen claiming responsibility for those attacks, which disrupted about 5% of global oil supplies, but Trump also stressed that he doesn't want to go to war with Iran.
President Trump also said that the US is now waiting for further evidence from the Saudi authorities about Iran's involvement in the attacks, while the US Secretary of Energy Rick Perry accused Iran of being behind the attacks, which pushed investors to transfer liquidity into safe havens, including silver.