Stock Market Watch

Gold Prices Fall, Silver Prices Down as Well

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Gold prices edged lower during Asian trading hours on Thursday as rattled investors shaken by yet another tumultuous day in equity markets sought safety in yen and other liquid currencies. Silver prices, meanwhile, also slipped in early trading on Thursday.

At last check, U.S. gold futures for August delivery fell 0.47% to $1,385.40 an ounce while spot gold edged down 0.14% to $1,385.91 an ounce.

Not even weaker U.S. dollar could support bullion prices as global investors are edgy amid rising ambiguity over when the Federal Reserve could start winding down its economic stimulating, bond purchase program.

On Thursday, the Nikkei 225 tumbled 6.35% while both Hang Seng and Shanghai Composite Index plunged more than 2%. European equities were trading sharply lower.

Volatility in both riskier assets and currency markets along with lack of economic data right through this week is also prompted investors to look at technicals or to make tradeoff between risk-return and safe haven bets.

Earlier this week Standard & Poor’s decision to upgrade the U.S’s sovereign credit rating outlook to “stable” also stoked concerns that the Federal Reserve could now start decelerating its economic stimulating measures.

“The sentiment is still very divided over whether the Fed will taper or not,” commented Joyce Liu, an investment analyst at Phillip Futures in Singapore, according to Reuters.

“Due to the lack of major market-moving events, people are just trading on technicals until some senior Fed officials say something before the FOMC meeting next week,” added Liu.

The Federal Reserve is scheduled to hold its next Federal Open Market Committee meeting (FOMC) on June 18-19.

Silver futures were down 0.23% to $21.75 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.05%.

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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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