Stock Market Watch

Gold Prices Fall Sharply; Silver Prices also Tumble

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Gold prices fell sharply in trading on Friday, tracking losses in the equity market. Gold posted its biggest one-day drop in over three months. Silver prices also tumbled on Friday.

Gold had been gaining momentum since mid-September after the Federal Reserve announced its latest bond buying program, boosting the precious metal’s inflation hedge appeal. However, doubts over the longevity of the Fed’s latest bond buying program have put downward pressure on gold.

Speaking to Reuters, Frank McGhee, Precious Metal Trader at Integrated Brokerage Services LLC, said that people who rushed in for QE expecting to get a significant lift are getting out of the market. McGhee said that the longer gold doesn’t make a new high, the more people start getting nervous about where gold is trading.

Spot gold fell more than 1% to $1,724 an ounce on Friday. Spot gold prices hit an intra-day low of $1,715.79 an ounce. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange settled $23 lower at $1,721.90 an ounce.

Silver prices also tumbled on Friday, with spot silver falling 2.3% to $32.01 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) ended the day 2.11% lower at $31.09, the ProShares Ultra Silver (ETF) (NYSE: AGQ) ended the day 4.08% lower at $50.12, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) ended the day 3.88% higher at $46.05.

Platinum and palladium fell sharply on Friday. At last check, spot platinum was down 1.5% to $1,610.24 an ounce, while spot palladium was down 3% to $619.47 an ounce.

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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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