Gold Prices Edge Lower but Clock Best weekly Performance in 2 Months; Silver Prices Also Slip
Gold prices pared some of previous session’s sharp gains on Friday; however, the metal clocked best weekly performance in last eight weeks amid widespread speculation that the Silver prices also edged lower in trading on Friday.
At last check, gold futures for December delivery fell 0.73% to $1,313.30 an ounce while spot gold edged down 0.4% to $1,313.80 an ounce.
The SPDR Gold Trust (ETF) (NYSE: GLD) was last down 0.46% to $126.85.
After the release of minutes from the Fed’s latest open market committee meeting, it was very clear that policymakers were in favor of tapering the bond purchase program before the year end. However, the recent government shutdown and subsequent adverse impact on the consumer and business sentiment has raised the possibility that the bank will be now disinclined to scale down its economic stimulating measures.
Besides the budget deal, which was reached on Wednesday, is only a temporary solution and lawmakers will once start to negotiate form February.
“We’re now focusing on two things: the next time we’ll have a debate on the (debt ceiling) issue, which is February, and tapering,” said Citi analyst David Wilson, according to Reuters.
“The debate has moved on from if to when (tapering will begin), so that will be continually factored into the gold price,” added Wilson.
On Thursday, analysts from banks such as Deutsche Bank and Commerzbank pointed out that the uncertainty over the U.S. economy due to a stop-gap agreement will keep the Fed reluctant to squeeze its bond purchase program until early next year.
Silver futures slipped 0.24% to $21.89 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.38% to $21.10, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.50% to $20.27.
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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. |