Gold Prices Settle Higher; Silver Prices Also Edge Higher
Gold prices edged higher on Wednesday as volatility in global equity markets prompted investors to take safety in safe-haven bets. Silver prices also edged higher in trading on Wednesday.
Gold futures for August delivery gained $15 to settle at $1,392 an ounce while spot gold was last up 0.81% to $1,390.10 an ounce. At last check, the SPDR Gold Trust (ETF) (NYSE: GLD) was up 0.84% to $134.37.
Silver futures were last up 0.48% to $21.75 an ounce.
Earlier during Asian and European trading hours, gold prices extended losses from the previous session due to lack of physical side demand from Asia, especially from China and Hong Kong.
Markets in China are shut as the nation was celebrating a 3 -day Dragon Boat Festival. Hong Kong was also closed on Wednesday. India, which is the world’s biggest consumer of the yellow, raised import duties on gold, last week, as the government tries to shrink the ballooning trade deficit.
In a note to clients, ANZ said, “With the Chinese out until Thursday, the market is lacking a key stabilizing factor,” according to Reuters.
“We continue to see little support for gold at least until their return,” added ANZ.
Moreover, growing fears that the Federal Reserve could soon pullback its bond purchase program in the backdrop of improving macroeconomic environment in the U.S. also weighed on the yellow metal prices.
Now, the entire spotlight will remain on the Federal Reserve’s next FOMC, scheduled on June 18-19. Earlier in May, the Fed Chairman, Ben Bernanke said in a testimony to the Congress that the central bank could start decelerating its economic stimulating measures (QE3) in next few FOMCs, should the labor and home market show drastic improvement.
Market sentiment is likely to remain wobbly until Bernanke announces his next policy rate statement, next week.
More Posts by this author
- GameStop Shares Upgraded (GME)
- Stocks End Lower
- Gold Prices Settle Higher; Silver Prices Also Gain
- Stocks Trade Lower
- Restoration Tops Q1 Estimates, Lift FY Guidance (RH)
- Stocks Slightly Lower in Early Trading
- Forex Market Update: Yen Gains against the U.S. Dollar
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.
|