Stock Market Watch

Gold Prices Fall To Five-week Low; Silver Prices Plunge

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Gold prices were on course to clock worst weekly performance in last two months on Friday as possibility that the Silver prices, meanwhile, plunged in trading on Friday.

At last check, gold futures for December delivery lost 1.59% to $1,309.40 an ounce while spot gold fell 0.89% to $1,308.50 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was last down 1.00% to $126.39

Speculation that the Fed will end its extremely accommodative monetary policy from the latter half of 2013 has put tremendous pressure on the metal, knocking off about 19% since the beginning of the year.

The next Federal open market committee meeting is scheduled on September 17-18 and speculation is rife that the Fed will scale down its $85billion worth bond purchase program by $10 billion to $15 billion from September.

The demand for safe-haven bets have also dried out as the U.S and Russia got closer to chart out a resolution which would push Damascus to allow international community to observe its chemical weapons program.

“Gold’s drop at the beginning of the week was mostly due to the waning safe-haven buying after the diplomatic action in Syria,” said Bernard Sin, Senior Vice President at MKS SA, according to Reuters.

“But now it’s all about the Fed tapering talks and expectations that the central bank will start, albeit slowly, as soon as this month,” added Sin.

Silver futures plunged 2.07% to $21.69 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.33% to $20.99, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 0.68% to $20.45.

 








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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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