Gold prices slipped in trading on Wednesday despite signs of stronger Asian physical demand from China and India. Silver prices also edged lower on Wednesday.
Gold has been under pressure since last week after minutes from Federal Reserve’s most recent monetary policy meeting showed that some Fed officials want to end the quantitative easing program before the end of this year. After falling for three straight sessions, gold recovered on Tuesday amid speculation that the Bank of Japan will announce further easing measures this month. However, the precious metal failed to extend its gains on Wednesday.
Speaking to Reuters, David Meger, Director of Metals Trading at Vision Financial Markets, said that the gold market now focuses on the European Central Bank (ECB) meeting on Thursday and the FOMC meeting at the end of the month. Meger said that other than those, gold has struggled to find a direction in a slow news week.
At last check on Wednesday, spot gold was down 0.2% to $1,656 an ounce. Gold futures for delivery in February on the Comex division of the New York Mercantile Exchange fell $6.70 to settle at $1,655.50 an ounce.
Silver prices also edged lower on Wednesday. At last check, spot silver was down 0.2% to around $30 an ounce.
In late trading on Wednesday, the iShares Silver Trust (ETF) (NYSE: SLV
) was down 0.07% to $29.35, the ProShares Ultra Silver (ETF) (NYSE: AGQ
) was down 0.23% to $43.80, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL
) was up 0.22% to $49.44.
Platinum and palladium rose sharply on Wednesday. At last check, spot platinum was up 1.3% to $1,594 an ounce, while spot palladium was up 2.9% to $687 an ounce.