Gold prices fell sharply in trading on Wednesday as the U.S. dollar strengthened. Silver prices also fell sharply.
Gold prices had climbed to a one-month high on Tuesday as concerns over an early-end to Federal Reserve’s bond buying program eased a little. However, the precious metal reversed some of its recent gains on profit booking.
Speaking to Reuters, Afshin Nabavi, Head of Trading at MKS, said that this is a breather we desperately needed. Nabavi believes that $1,300-$1,350 an ounce ought to remain the range until August 2’s non-farm payrolls data. He added that if the number is bad for the dollar, then gold prices could test $1,400 an ounce. Nabavi noted that $1,300 an ounce will remain a strong support for the precious metal.
At last check on Wednesday, spot gold prices were down 2.2% to $1,317 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange were down 1.2% to $1,318 an ounce, at last check.
Silver prices also fell sharply on Wednesday. At last check, silver prices were down 2.20% to $20 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV
) was down 1.82% to $19.41, and the ProShares Ultra Silver (ETF) (NYSE: AGQ
) was down 3.47% to $17.81.
Platinum and palladium edged higher on Wednesday. At last check, spot platinum was up 0.3% to $1,443 an ounce. Spot palladium was last trading at $742 an ounce, up 0.40%.