Gold Prices Edge Lower; Silver Prices Also Slip
Gold prices pared some of its previous session’s gains on Wednesday. Some profit booking and short positioning after the metal crossed $1,330 an ounce level on Tuesday, weighed on prices despite a broadly weaker dollar. Silver prices also slipped in trading on Wednesday.
The metal on Tuesday soared about 2% to touch its four-week high level after weaker-than-expected non-farm payrolls data raised expectations that the Federal Reserve might delay its tapering of the quantitative easing until early next year.
The latest non-farm payroll report showed that the labor market just added 148,000 net payrolls in September against economists’ expectation of 180,000.
Gold prices have lost about 20% since the beginning of the year amid expectations that the Fed could start winding down its asset purchases before the year end
At last check, December gold futures fell 0.53% to $1,335.50 an ounce while spot gold edged down 0.39% to $1,334.86 an ounce.
The SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.45% to $128.76.
“Yesterday’s bounce fizzled out very quickly, which is another sign that rallies are really seen as selling opportunities… and people don’t expect much higher prices,” said Georgette Boele, an analyst at ABN Amro, according to Reuters.
Meanwhile, global equities also clocked sharp losses while safe-haven currencies such as yen and Swiss franc strengthened after a report from China unnerved investors. The report said that the nation’s top lenders wrote-off $3.7 billion in bad debts in the first half of the year.
Silver futures lost 0.64% to $22.64 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.50%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 0.96%.
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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. |