Stock Market Watch

Gold Prices Ease, Silver Prices Plunge More Than 2%

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Gold prices eased and hovered around $1,400 an ounce mark on Friday as concerns over the Middle East that gripped the market sentiment for most part of the week, fizzled after the British Parliament voted against any joint military action on Syria while a broadly higher U.S. dollar amid expectations that the Silver prices, meanwhile, plunged in trading on Friday.

In the U.S., meanwhile, officials acknowledged that there was no credible evidence to show that Syria’s President Assad ordered chemical weapons attack that killed several people in Damascus.

At last check, gold futures for December delivery fell 0.92% to $1,399.90 an ounce while spot gold lost 0.62% to $1,398.96 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.71% to $134.90.

Silver futures plunged 2.11% to $23.63 an ounce.

Earlier this week, the metal clocked its 15-month high, peaking at $1,433.31 as the demand for safe-haven bets soared after leaders from western countries indicated at possible missile strikes on Syria.

Short coverings also supported bullion prices in August. The metal broke several key resistances right through the month.

“The move higher in August was driven mostly by short-covering and opportunistic buying, which seems to have now run out of steam,” said Andrey Kryuchenkov, an analyst at VTB Capital, according to Reuters.

The dollar Index also traded at its four-week high after the Institute of Supply Management’s business activities index showed expansion in August.

Bullion prices and the U.S. dollar, typically, move in opposite directions. As commodities are traded in U.S. dollars in the international market, any strength in the U.S. unit weighs on their demand.

 








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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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