MTECHTIPS:-Silver futures under pressure as stronger dollar weighs

MTECHTIPS:-Silver futures under pressure as stronger dollar weighs

Silver futures were lower on Tuesday, tracking gold prices lower, as a broadly stronger U.S. dollar dampened the appeal of the precious metal. On the Comex division of the New York Mercantile Exchange, silver futures for July delivery traded at USD22.30 a troy ounce during European morning trade, down 0.85% on the day. Comex silver prices fell by as much as 1% earlier in the session to hit a daily low of USD22.26 a troy ounce. Silver prices were likely to find support at USD21.92 a troy ounce, the low from May 23 and resistance at USD23.12, the high from May 20. Comex floor trading, which was closed for Monday’s U.S. Memorial Day holiday, will resume Tuesday. Silver prices struggled for upside traction due to a broadly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.25% to trade at 83.95. Demand for the dollar continued to be underpinned by expectations that the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program. Last week, the minutes from the U.S. central bank’s May meeting showed that a "number" of policymakers were prepared to taper bonds purchases as soon as June.