Stock Market Watch

Gold Futures Below $1,400, Silver Futures Fall More Than 1.50%

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Gold futures plunged more than 1% during Asian trading hours on Friday as tensions over Syria faded, weighing on the metal’s safe-haven appeal. In addition, two stronger-than-expected U.S. economic indicators (released on Thursday) also rekindled speculation that the Federal Reserve might announce the start of the tapering process of its bond buying program by September. Silver futures have also fallen sharply in early trading on Friday.

At last check, gold futures for December delivery plunged 1.21% to $1,395.80 an ounce while spot gold fell 0.91% to $1,394.86 an ounce.

Still, the metal is on course to post a monthly gain. Short coverings after the metal broke several key resistance levels on August helped extending gains.

The possibility of any immediate military action on Syria by the U.S. and its allies has diminished after the British Parliament voted against Prime Minister David Cameron’s call for immediate joint military intervention in Syria. Earlier President Obama also indicated that any possible attack will be “tailored; limited’.

Bullion investors will now keep a close on monthly non-farm payrolls report, scheduled to be released on next Friday. If this data shows that the U.S. labor market is improving steadily then the Fed might start scaling down its economic stimulating measures from September.

On Thursday, a revised second quarter GDP showed that the U.S. economy expanded at a faster-than-expected rate.

Speaking to Reuters one Singapore based gold trader said, “Looks like the market is running out of steam at these levels…If it cannot hold above $1,400 today, it will surely see a sharp drop.”

“We have seen quite a sharp slowdown in physical buying(in Asia),” added the trader.

Silver futures tumbled 1.59% $23.75 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.13% to $22.96, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 0.81% to $24.49.

 

 








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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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