Stock Market Watch

Gold Prices Plunge More Than 1.50% As Investors Cut Safe Haven Bets

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Gold Prices were walloped on Tuesday, touching a near three-week low level as investors cut positions on safe-haven bets, in hordes, after Syria accepted  Moscow’s proposal to allow international observers to scrutinize its weapons program, which in turn could avert a U.S. military intervention against Assad’s regime.

At last check, gold futures for December delivery plunged 1.62% to $1,364.30 an ounce while spot gold tumbled 1.66% to $1,363.86 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was last down 1.61% to $131.75.

Silver futures fell 2.88% to $23.04 an ounce.

In a note to investors, Robin Bhar, an analyst at Societe Generale said, “The whole reason gold rallied in the last few weeks has been on the back of the Middle East tension and the rise in the oil price, but that now is going into reverse with the possibility of an agreement,” according to Reuters.

Meanwhile, The White House said that the U.S. would “explore seriously the viability of the Russian proposal” and start discussions over the matter on Tuesday at the U.N. on a potential resolution by the Security Council.

Besides, ambiguity over what will be the Federal Reserve’s stance on ongoing bond purchase program is also keeping investors at bay. The Fed is scheduled to hold its next open market committee meeting (FOMC) on September 17-18.

The Fed’s ultra-loose monetary policy was the main factor behind gold’s bull runs since 2008/09 as low interest rates prompted investors to invest in non-interest bearing assets such as gold.








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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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