Silver prices inched up 1% on Wednesday on a weaker dollar, with investors awaiting the outcome of the Federal Reserve's policy meeting for details of the U.S. central bank's plans to balance interest rates against its inflation target.
The U.S. central bank last month adopted a more accommodative approach to inflation and pledged to keep interest rates low for longer.
Lower U.S. interest rates increase the appeal of non-yielding bullion with gold and silver also used as a hedge against inflation and currency debasement.
The expectations are that the Fed is going to leave the interest rates low for a very extended period of time, and inflation numbers to run over their 2% target rate.
The Fed policy decision is due at 2 p.m. EDT (1900 London Time). The meeting is its first since the central bank took a more relaxed stance on inflation last month. The policy announcement will be followed by a news conference by Fed Chair Jerome Powell.
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