Gold Prices Extend Losses, Silver Prices Also Slip
Gold prices extended losses on Thursday falling to its 10-month low level during Asian trading hours as rattled investors following sharp losses in global equities in preceding session, offloaded the precious metal to cover losses. Silver prices also edged lower on Thursday.
At last check, U.S. gold futures for June delivery lost 0.59% to $1,544.40 an ounce while spot gold fell 0.83% to $1,544.39 an ounce.
A pair of unexpectedly disappointing U.S. economic data sparked off panic sell-off across-the-board on Wednesday.
Intensifying tension in Korean peninsula also failed to trigger investors’ interest in safe-haven bets.
According to Reuters, South Korea’s new agency Yonhap said that North Korea has apparently moved mid-range Musudan missile to its east coast on Thursday.
“As for North Korea, I think investors are seeing the threats more like a joke. They are not reacting as if North Korea is really going to launch a nuclear-loaded missile. Funds are moving out of gold because there’s less need for safe haven,” said Joyce Liu, an investment analyst at Phillip Futures in Singapore, according to Reuters.
Liu also added that investors’ sentiment on bullion is very bearish at the moment; and, should the metal continue to slip then it can hit to $1,530 an ounce level.
Gold prices, having rallied in last five years in the backdrop of extremely accommodating monetary policy adopted by the Federal Reserve, are under pressure as lack of inflationary pressure in the world’s top economies (the U.S, and the euro zone) has dented metal’s inflation hedge appeal. Besides, improving U.S. economic indicators (barring yesterday’s weak data) is also driving investors away towards better performing equity markets.
Silver futures slipped 0.12% to $26.77 an ounce.
In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.73%, and the ProShares Ultra Silver (ETF) (NTSE: AGQ) was down 1.47%.
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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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