By Michelle Smith — Exclusive to Silver Investing News
Silver started this week moving in a positive direction, but is now back under pressure. The metal has yet to return to its February 29 high, and it appears that many investors are deciding not to wait around. US Federal Reserve Chairman Ben Bernanke was again a factor in the week's silver action, but this time he had a positive effect on the market. Falling jobless claims have been an important piece of evidence used to support confidence that the US economy is recovering. This data has also played a role in pressuring silver. Speaking at a business conference, Bernanke put employment figures into a more sobering perspective, pointing out that nearly two years of gains have resulted in unemployment that remains well above pre-crisis levels. He also cited hours worked as being below the peak, and the current unemployment rate of 8.3 percent as being above what many economists consider to be sustainable in the long term. Furthermore, Bernanke reiterated the Fed's commitment to monetary policy, which is accomodative to employment. The markets, which have been desperate for a US liquidity injection, translated this as a renewed possibility for more quantitative easing. Silver rallied during US trading, rising $1.80, and COMEX May silver managed to touch its highest level since March 20. Bernanke, however, does not receive all of the credit. Strong equities markets also appear to have been a factor. Silver weakens mid-week By mid-week, silver prices were back under pressure. Though the silver market reacted to Fed statements, the effects are based merely on speculation of what some people interpret certain words or omissions to mean. The lack of a clearly established position on what the Fed is going to do creates volatility more than a real direction for silver.