Gold Prices Edge Lower, Silver Prices Also Slip

Gold prices eased further during Asian trading hours on Wednesday after plunging more than 1.5% in the previous session as the demand for safe-haven bets dried out after concerns over any impending U.S. led military intervention in Syria faded. Silver prices have also edged lower in early trading on Wednesday.

At last check, gold futures for December delivery edged lower 0.35% to $1,359.20 an ounce while spot gold slipped 0.21% to $1,360.79 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was last down 0.21% to $131.46 in premarket trading.

Silver futures slipped 0.13% to $22.98 an ounce.

Gold prices touched three-week low level on Tuesday after Syria accepted Russia’s proposal to put up its weapons program under international scrutiny, weighing heavily on the metal’s safe-haven appeal. The latest development has possibly prevented a U.S. led military action against Syria. Besides, Obama’s call for limited strikes against Assad’s regime had found not many backers in Washington.

Simmering concerns over when and what pace the Federal Reserve will start winding down its gold-supportive bond purchase program is also keeping pressure on the metal.

The Federal Reserve is scheduled to hold its next open market committee meeting on Sept. 17-18. Opinion is divided over the tapering (scaling down of bond purchases) issue.

The metal has lost about 18% so far this year amid widespread speculation that the Fed will start squeezing economic stimulating measures form the latter half of 2013.

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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.