Gold Prices Mainly Flat; Silver Prices Edge Lower
Gold futures pared earlier losses to turn almost flat on a day which saw broader asset classes coming under pressure as growing concerns over government shutdown and potential threat of U.S. sovereign default resulted in large-scale liquidations. Silver prices, meanwhile, edged lower in trading on Thursday.
At last check, gold futures for December delivery slipped 0.11% to $1,319.30 an ounce while spot gold inched up 0.09% to $1,315.80 an ounce.
The SPDR Gold Trust (ETF) (NYSE: GLD) was almost flat at $127.08.
The shutdown entered its third day on Thursday with no signs of progress in Washington. Last night, President Obama and congressional leaders met for a budget-deal but once again arguments and counter-arguments resulted in a policy stalemate.
Another major cause for concern is the unresolved debt-ceiling issue. Lawmakers have to resolve this issue before October 17 deadline. In case, no agreement is reached then the treasury might default on its debt, which will be catastrophic for the global financial markets, although most analysts believe that this is unthinkable.
Due to the shutdown several economic data releases have been delayed. The all-important non-farm payrolls data, which was due on Friday, is now delayed. This in turn will make it difficult for the Federal Reserve to decide when to taper its quantitative easing. Uncertainty over fiscal and monetary policy will dissuade investors to take any fresh bets on gold. Year-to-date, the metal has lost about 23%.
The dollar index hovered near its eight-month low on Thursday but it failed to support the demand for dollar-dominated commodities. The dollar index traded lower for the fifth straight session on Thursday.
Silver futures edged down 0.35% to $21.82 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was flat at $20.92, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 0.10% to $20.08.
More Posts by this author
Blackberry In Talks with Several Tech Firms: Sources To Reuters
Potbelly Shares Soar about 120% on First Trading Day
Stocks End Sharply Higher
Gold Prices Slip, Posts about 2% Weekly Loss; Silver Price Also Edge Lower
Stocks Bounce Back after a Shaky Start
Forex Market Update: Euro Edges Down against Dollar, Dollar Index Up
Stocks Flat in Early Trade
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. |