Gold Prices Edge Lower; Silver Prices also Slip
Gold prices edged lower in trading on Tuesday as commodity investors cut their positions after reports of missing client funds from another U.S. futures brokerage. Silver prices also edged lower on Tuesday.
Gold prices had risen earlier on Tuesday after some positive development in the euro zone lifted sentiments. However, the precious metal erased its gains after news that PFGBest told its customers that their accounts had been frozen. According to a U.S. industry body, around $220 million in customer funds are missing from the brokerage’s bank accounts. Following the reports, Jefferies said that it began to liquidate trading positions of PFGBest.
At last check, spot gold prices were down 0.6% to $1,577 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange slipped $9.30 to settle at $1,579.90 an ounce.
Gold tracked losses in the equity market, which fell sharply on Tuesday amid profit warnings from several companies at the start of the earnings season. In the last few months, gold has traded more like a risk asset than a safe haven asset.
Silver prices also fell sharply on Tuesday. At last check, spot silver was down 2.05% to $26.78 an ounce.
Silver ETFs also slipped on Tuesday. At last check, the iShares Silver Trust (ETF) (NYSE: SLV) was down 1.85% to $26.03, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 3.82% to $36.22.
The ProShares UltraShort Silver (ETF) (NYSE: ZSL), which takes a short position on silver, rose more than 3.50% on Tuesday.
Platinum and palladium also slipped. At last check, spot platinum was down 1.2% to $1,421 an ounce, while spot palladium was down 1.2% to $572 an ounce.
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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.
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