Stock Market Watch

Gold Prices Flat, Silver Prices Gain

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Gold futures remained almost flat during Asian trading hours on Thursday as trading volume was low due to impending holidays in China, which kept traders in sidelines. Besides, ambiguity surrounding the tapering of bond purchase program is also keeping investors at bay. Silver prices, meanwhile, edged higher in early trading on Thursday.

At last check, gold futures for December delivery inched up 0.06% to $1,337.00 an ounce while spot gold edged up 0.26% to $1,336.51 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) added 0.25% in premarket trading to $129.11.

Silver futures added 0.77% to $22.05 an ounce.

The policy stalemate in Washington over debit-ceiling issue supported bullion’s safe-haven appeal on Wednesday with gold futures jumping more than 1%. However, gains are likely to be capped as market participants believe that this is only politicking or a yearend drama and lawmakers will soon find a middle path.

Speaking to Reuters, one Hong Kong based trader said, “We have seen this story play out before and essentially it becomes an exercise in politicking,”

“People are looking at it due to the lack of news elsewhere, added the precious metal trader.

Earlier on Wednesday, Christin Tuxen, an analyst at Danske Bank, said that “the market has become so used to this discussion (debt-ceiling issue) coming up every time at the end of the year that is not a massive factor anymore.”

Meanwhile, investors will keep an eye on impending U.S. economic data releases, especially the non-farm payrolls report for September. The job numbers could provide a clue on whether the Federal Reserve will be inclined to  scale down its economic stimulating measures when it meets for next open market committee meeting (FOMC) on Oct. 29.-Oct 30.

 








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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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