Stock Market Watch

Gold Prices Reverse Some Losses; Silver Prices also Slip

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Gold prices shed earlier sharp losses but still continued to trade lower on Tuesday as investors remained wary to take fresh bets amid no signs of budget deal in Washington. Silver prices also edged lower in trading on Tuesday.

At last check, spot gold prices were down 0.1% to $1,272 an ounce. Gold futures for delivery in December slipped 0.5% to $1,271 an ounce.

Earlier during Asian trading hours, gold prices fell sharply as expectations were widespread that lawmakers will break the impasse over the fiscal policy on Tuesday. On Monday, Senator Harry Reid, a Democrat said that he had a productive meeting with his Republican counterpart Mitch McConnell. Reid said that the both sides were likely to cut a deal on Tuesday.

However, by late afternoon on Tuesday no significant progress was made. House Speaker John Boehner said that both sides were still negotiating.

“Nerves are fraying, and that’s being reflected in huge moves in the gold market as sentiment ebbs and flows,” said Robin Bhar, an analyst at Societe Generale, according to Reuters.

“The default move is that we will get an agreement, and that will send gold even lower. That’s just another reason to lighten up on gold,” added Bhar.

Stronger dollar also weighed on the demand. The dollar index climbed its one-month high on Tuesday, making dollar-priced commodities expensive for holders of other currencies.

Meanwhile, Dallas Fed President, Richard Fisher said on Tuesday that he sees that the Federal Reserve will remain reluctant to scale back its economic stimulating measures from October due to negative economic impact arising from the shutdown.

Silver prices also edged lower in trading on Tuesday. At last check, silver futures were down 0.58% to $21.23 an ounce. In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.05%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 0.47%.

 








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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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