Stock Market Watch

Gold Prices Up But Physical Side Demand Weak, Silver Prices Gain As Well

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Gold futures edged higher during Asian trading hours on Wednesday but gains are expected to be capped as recent wild fluctuations in prices and lack of clarity over the Silver prices also edged higher in early trading on Wednesday.

At last check, gold futures for December delivery gained 0.47% to $1,322.50 an ounce while spot gold slipped 0.11% to $1,321.09 an ounce.

SPDR Gold Trust (ETF) (NYSE: GLD) slipped 0.12% in premarket trading to $127.52.

Silver futures edged up 0.50% to $21.70 an ounce.

Gold prices, which are down about 20% year-to-date, have swung wildly in either direction lately as policymakers differed in their views concerning the bond purchase program. St. Louis Fed President; James Bullard said that the policymakers in the recent open market committee meeting (FOMC) were divided over whether the bank should start tapering of the quantitative easing from September. He said that the Fed’s decision to continue with its quantitative easing was a close call.

Earlier this week, Dallas Fed President also showed his dismay over the Fed’s decision, although his is not a voting member at FOMC.

Prices are expected to remain subdued until the Labor Department releases its September non-farm payrolls data on the first Friday of October.

The Fed’s next open market committee meeting (FOMC) is scheduled on Oct 20-30.

Meanwhile, the physical side demand in Asia continues to remain soft even though the festival and wedding season in India is just around the corner.

“We are seeing very slow demand as people are still bearish,” said Peter Fung, head of dealing at Hong Kong’s Wing Fung Precious Metals, speaking to Reuters.

“They are waiting for prices to fall below $1,300,” added Fung.

 








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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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