Stock Market Watch

Gold Prices Edge Higher as Dollar Weakens; Silver Prices Slip

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Gold prices pared earlier losses to turn higher on Tuesday as the U.S. dollar fell sharply against major traded currencies, making dollar-priced commodities cheaper in international market. Silver prices pared initially losses but were still down in late trading.

At last check, gold futures for December delivery edged up 0.48% to $1,372.30 an ounce while spot gold gained 0.5% to $1,372.26 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was up 0.45% to $132.60.

Bullion has now clocked gains in seven of the last nine sessions.

Silver futures also pared sharp losses but were still down 0.60% to $23.07 an ounce, at last check.

The U.S. unit was weighed down due to ambiguity surrounding the tapering of the quantitative easing. The ICE dollar Index fell as low as 0.50% on Tuesday.

On Wednesday, perhaps that uncertainty could fizzle. The Federal Reserve is scheduled to release its most recent minutes from open market committee meeting (FOMC), held in July 30-31.

Bullion investors are hoping that minutes could provide some clue over tapering of the bond purchase program.

If minutes show that policymakers are still disinclined to decelerate the pace of economic stimulating measures then the metal could extend gains.

In addition to weaker dollar, short coverings and improved physical side demand from Asia, especially China has also supported the metal prices.

The Federal Reserve’s extremely accommodating monetary policy helped the metal to post nonstop bull runs for 12 straight years until 2012. The metal peaked at $1,920 in September 2011. However, since the beginning of this year, speculation is rife that the Fed could eventually start scaling down the pace of economic stimulating measures from the second half of 2013.

 








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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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