Stock Market Watch

Gold Prices Ease, Silver Prices Down As Well

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Gold prices edged lower during Asian trading hours on Friday due to lack of physical side demand (markets in China were closed due to mid-autumn festival). However, the metal hovered near its one-week high level and is on course to post best weekly performance in last five weeks. Silver prices also slipped in trading on Friday.

At last check, gold futures for December delivery fell 0.77% to $1,358.80 an ounce while spot gold edged down 0.48% to $1,357.88 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.51% in premarket trading to $131.10.

Silver futures plunged 2.07% to $22.81 an ounce.

Bullion staged a strong come back on Thursday, climbing more than 4.50% after the Federal Reserve, surprised global investors by postponing tapering process of economic stimulating measures (bond purchase program).

The general perception was that the Fed will scale down its bond purchase program by $10 billion. However, the Fed’s Chairman, Ben Bernanke remained non-committal when asked on when the bank intends to start winding down its asset purchases, adding that the program was “not on a preset course”

“The market will take some time to digest the ‘no-taper’ surprise,” said Victor Thianpiriya, an analyst at ANZ in Singapore, according to Reuters.

Thianpriya added that impending U.S. economic data will now hold lots more significance.

The next Federal Open Market Committee Meeting is scheduled on October 29-30.

Echoing, Thianpriya thoughts, OCBC Bank, a Singapore based bank said in a note to clients, “The prospect of any tapering this October remains data-dependent,” adding that “speculative interest may remain soft as investors continue to play a wait-and-see game for incoming U.S.-centric economic data.”

 








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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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