Stock Market Watch

Gold and Silver Prices Edge Lower

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Gold futures pared earlier small gains to turn lower during Asian trading hours on Tuesday as the demand for safe-haven bets failed to pick up even after lawmakers in Washington failed to reach a deal over deciding the budget limit, resulting in partial government shutdown. Silver prices also edged lower in early trading on Tuesday.

At last check, gold futures for December delivery slipped 0.17% to $1,324.80 an ounce while spot gold slid 0.12% to $1,325.40 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was almost flat at $128.10.

Silver futures edged down 0.36% to $21.63 an ounce.

The lawmakers had to cut a deal before the midnight of Oct. 1; but the impasse continued.

Prices fell as market participants expect that Washington will sooner than later agree on a temporary solution, which will allow the functioning of federal agencies and program.

Market participants will now wait to see whether the Congress can meet a more important deadline in mid-October to increase the debt-ceiling limit.

“Should the political wrangling continue over the debt-ceiling negotiations mid-month, this could provide the impetus for gold to break out of its $1,300 to 1,350 range,” said Victor Thianpiriya, an analyst at ANZ in Singapore, according to Reuters.

“The market is not putting on a big net position which makes me think that when we get a breakout, it is likely to be sizeable,” added Thianpiriya.

Easing Physical Side Demand

According to Reuters, sales of gold coins and bars at Perth Mint more than doubled from the last month in September but remained 17% lower than the same period of last year.

Markets in China were shut due to a national holiday.

 








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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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