Stock Market Watch

Gold Prices Pare Initial Gains, Silver Prices Fall

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Gold futures pared earlier gains to turn almost flat on Wednesday but hovered around $1,420 an ounce, a 15-week high level. Silver prices, meanwhile, fell in trading on Wednesday.

Profit booking following previous session’s rally, capped gains on Wednesday.

However, the metal’s safe-haven appeal will remain intact in the short run as U.S. and its allies gear up for a military intervention in Syria.

At last check, gold futures for December delivery was almost flat at $1,420.00 an ounce while spot gold added 0.20% to $1,418.81 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was up 0.29% to $137.12.

Silver futures fell 0.91% to $24.48 an ounce.

Earlier today, the metal touched an intra-day high of $1,433.31 an ounce, which was its highest level since May 14.

Some metal strategists argue that the uptrend in bullion prices will continue even without middle-east concerns.

“The latest move upwards is certainly related to safe-haven buying on the back of a potential attack on Syria,” said ABN Amro commodity analyst Georgette Boele, according to Reuters.

“But you already had a turnaround in sentiment around a week ago when people started to get nervous about the timing of the Fed tapering (after some tepid U.S. economic data),” added Boele.

Echoing the sentiment, Julian Phillips, a contributor to GoldForecaster.com and SilverForecaster.com, said, “Syria is a Middle East factor that is only temporarily adding to demand…“Without Syria the gold price would rise. Syria may simply accelerate that rise”, according to MarketWatch.

Bullion has clocked almost 8% gains so far this month as speculation that the Federal Reserve will start tapering its bond buying program from September, ebbed after the release of some very disappointing economic indicators.








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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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