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Gold Prices Edge Lower; Silver Prices Also Fall

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Gold prices have edged lower in early trading on Friday as the U.S. dollar strengthened ahead of the release of all-important nonfarm payrolls data. Silver prices also fell sharply in early trading on Friday.

The nonfarm payrolls data for June is expected to show 165,000 job additions. However, if the report comes in ahead of expectations, it would raise the possibility of an early end to Federal Reserve’s asset purchase program, which would be a negative for gold. Concerns over the longevity of Fed’s bond purchase program had sparked a huge sell-off in gold in the second quarter, with the precious metal falling 23%.

Speaking to Reuters, Danske Bank analyst Christin Tuxen said that the bank has forecast for a strong nonfarm number and if it is proved right on that there could be some further downside in store for gold, because that would suggest that although rates are set to stay record lows in Europe, that may not be the case in Europe.

At last check, spot gold was trading 1.3% lower at $1,233.81 an ounce. Gold futures for delivery in August were last down $18.80 to $1,232.90 an ounce.

Silver prices have also fallen sharply today. At last check, silver futures were down 2.2% to $19.08 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 2.16%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 3.91%.

Platinum and palladium have also edged lower in trading on Friday.

 

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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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