Stock Market Watch

Gold, Silver Prices Down as Dollar Recovers

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Gold Prices headed southwards during Asian trading hours on Wednesday after gaining about 2% in the previous session as the dollar strengthened while some profit booking also weighed on prices. Silver prices also edged lower in early trading on Wednesday.

At last check, December gold futures fell 0.75% to $1,332.50 an ounce while spot gold lost 0.66% to $1,331.16 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.63% in premarket trading to $128.53.

Silver futures were down 0.83% to $22.60 an ounce.

On Tuesday, gold prices clocked sharp gains, hitting a four-week higher level after a weaker-than-expected non-farm payrolls data reignited speculation that the Federal Reserve might continue with its gold supportive bond purchase program until early next year. The dollar index fell to its eight-month low while equities also posted moderate gains on Tuesday.

However, the sell-off pressure on the dollar eased on Wednesday. The dollar Index gained about 0.10%, at last check.

Commenting over fall in gold prices, Jonathan Butler, an analyst at Mitsubishi said, “As we’ve seen in the past, some investors are looking for entry points at which to go short, and above 1,330 may be one such level. So we may see some short-positioning coming in, and we might also see some profit-taking based on the moves of the last few days,” according to Reuters.

SPDR Gold Trust Reports Inflows

A data provided by Reuters showed that holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange traded fund, saw an inflow of more than 6 tons on Tuesday after recording an outflow of more than 10 tons on Monday.

 








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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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