Stock Market Watch

Gold Prices Edge Lower after Bernanke Comments; Silver Prices also Slide

by ·









Gold prices edged lower after comments from Federal Reserve Chairman Ben Bernanke dashed hopes of another round of quantitative easing. Silver prices have also fallen sharply in mid-day trading.

Gold had been gaining momentum since last Friday after a weaker than expected jobs report raised the prospects of further monetary easing from the Federal Reserve. However, hopes of further monetary easing were dashed after Ben Bernanke did not hint at any new stimulus to boost the economy.


Bernanke said that the Fed was prepared to protect the economy from any worsening in the strains on the financial system right now. But the Fed Chairman did not say that the bank would implement any additional measures.

Following the comments, spot gold prices fell sharply. At last check, spot gold prices were trading 1.91% lower at $1,586.60 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange are currently trading 2.6% lower at $1,591.70 an ounce.

Speaking to Reuters, James Steel, analyst at HSBC, said that the market has already reacted to the weaker jobs data, so that will be in everyone’s mind. Steel said that it will be important for gold to hold the $1,600 an ounce level. He added that gold has not been behaving as a safe-haven and that it is more likely to track indications on monetary policy.

Silver prices have also fallen sharply in trading today shedding almost all its gains from Wednesday. At last check, spot silver was down 2.93% to $28.51 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 2.63% lower at $27.76, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 5.36% lower at $41.65, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 5.75% higher at $63.80.

 








More Posts by this author

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.


Tags:

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.

You may also like...