Gold prices edged lower in trading on Thursday as the U.S. dollar strengthened. Silver prices also fell sharply on Thursday.
Gold slipped as initial excitement over the fiscal cliff deal reached late Tuesday faded. The precious metal tracked losses in the equity market, which also slipped after posting huge gains on Wednesday. A stronger U.S. dollar also put pressure on gold. The dollar rose to a three-week high against a basket of currencies on Thursday.
Speaking to Reuters, David Jolie, strategic analyst at Mitsui Precious Metals, said that the deal to avoid a fiscal cliff has boosted some problems into the long grass by a considerable distance but there are still issues out there such as expanding the debt ceiling, which could prove to be difficult negotiations.
At last check Thursday, spot gold was down over 1% to $1,662.86 an ounce. Gold futures for delivery in February on the Comex division of the New York Mercantile Exchange settled $14.20 lower at $1,674.60 an ounce.
Silver prices fell sharply on Thursday. At last check, spot silver was down 1.7% to $30 an ounce.
In late trading on Thursday, the iShares Silver Trust (ETF) (NYSE: SLV
) was down 2.67% to $29.13, the ProShares Ultra Silver (ETF) (NYSE: AGQ
) was down 5.29% to $43.37, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL
) was up 5.24% to $50.57.
Platinum and palladium also slipped. At last check, spot platinum was down 0.4% to $1,566 an ounce, while spot palladium was down almost 2% to $689 an ounce.