Stock Market Watch

Gold Prices Near Four-Week Low Level, Silver Prices Down More Than 4%

by ·


Gold prices tumbled more than 2% on Thursday to trade near four-week low level of $1,327 an ounce due to technical sell-off, which ensued after the metal break below several key support levels amid widespread speculation that the Silver prices also plunged in trading on Thursday.

At last check, gold futures for December delivery plunged 2.42% to $1,330.80 an ounce while spot gold tumbled 2.68% to $1,329.54 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was last down 2.52% to $128.38.

The Fed will hold its two day open market committee meeting on September 17-18 and investors are curious to know at what pace the bank will start reducing its asset purchases program.

A recently conducted Reuters’ poll shows that economists expect the Fed to narrow its $85 billion worth monthly bond purchase program initially by $10 billion.

In a note to investors, Robin Bahr, an analyst at Societe Generale said, “We’ve got the Fed meeting next week, and the consensus now is that they will announce, and actually begin, tapering,” according to Reuters.

“The incoming data has been pretty strong. The jobs data last Friday (fell short of expectation), but it still showed the unemployment rate falling. (This means) gold is less in favour,” added Bahr.

According to Reuters, traders said that technical selling was triggered after the metal fell below its 100-day moving average of $1,355 an ounce.

Silver futures plummeted 4.13% to $22.21 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 4.22% to $21.36, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 8.31% to $21.18.

 








More Posts by this author

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.

Tags:

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.

You may also like...