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Gold Prices Settle Higher; Silver Prices Also Gain

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Gold prices edged higher on Friday but remained mainly flat for the week as investors remained in sidelines, waiting for the Federal Reserve’s stance on its bond purchase program when it meets for its FOMC, next week. Silver prices also edged higher in trading on Friday.

Gold futures for August delivery added $9.80 to settle at $1,387.60 an ounce while spot gold was last up 0.18% to $1,387.94 an ounce.

The Federal Reserve and global central banks’ extremely accommodating monetary policies in last few years have been the main factor behind gold bull runs. However, right from the start of this year, better performing equity markets and rising concerns that the Fed might curtail sooner than latter its economic stimulating measures amid improving U.S. macroeconomic environment  have kept the pressure on the yellow metal.

Series of reasonably decent U.S. economic data released this week has intensified speculation that the Fed might decelerate the pace of  its bond purchase program.

Earlier this week, the Bank of Japan (BOJ) also refrained from providing any additional economic stimulating measures.

Although some market strategists believe that the labor market is still not strong enough to convince the Fed to change its current monetary policy, investors are reluctant to take fresh positions before the Fed’s next open market committee meeting on June 18-19.

“The Fed meeting next week has kept a lot of people on the sidelines… We may have some moves next week after the FOMC (meeting),” said Afshin Nabavi, head of trading at MKS, according to Reuters.

Silver futures were last up 1.89% to $21.99 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 1.24%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 2.54%.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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