Stock Market Watch

Gold Prices Fall Sharply, Silver Tumbles As Well

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Gold prices fell sharply during Asian trading hours on Tuesday as investors’ appetite for riskier assets such as equities, grew following a release of some more positive economic data from China. The metal’s safe-haven appeal also lost its shine after concerns over any immediate U.S. led attack on Syria eased.

At last check, gold futures for December delivery plunged 1.18% to $1,370.40 an ounce while spot gold fell 1.12% to $1,371.42 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.93% in premarket trading to $132.66

Silver futures tumbled 2.05% to $23.23 an ounce

China’s industrial output and retail sales increased in August. Both data were stronger-than-expected. A set of three positive data from China in two days (Exports also rose sharply in August), re-emphasizes the fact that the world’s second largest economy is regaining the momentum.

Meanwhile, Russia has proposed that it will convince Damascus to allow its chemical weapon program function under international scrutiny. President Obama is also finding it difficult to garner support from the congress for a military intervention against Assad’s regime.

Another factor which is keeping investors away from bullion is the lingering ambiguity over continuation of the quantitative easing (QE).

In spite of Friday’s tepid non-farm payrolls data, speculation is still rife that the Fed will signal an end to its accommodating monetary policy when it meets for next open market committee meeting (FOMC) on September 17-18.

“People are waiting for the next FOMC meeting to see whether they are going to end the QE or reduce buying debts. Sentiment is not that bullish,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong while speaking to Reuters.

 








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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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