Gold Prices Settle Lower; Silver Prices Fall Sharply
Gold prices pared initial gains to finish lower on Tuesday as investors remained on the sidelines ahead of the release of minutes of Silver prices, meanwhile, fell sharply on Tuesday.
Gold initially rose on the back of physical demand from Asia. However, the precious metal failed to hold on to its gains as investors’ demand was weak ahead of the release of Fed minutes.
At last check, spot gold was down 0.30% to around $1,605 an ounce. On Friday, gold prices had hit a six-month low of $1,598.04 an ounce. Gold futures for delivery in April on the Comex division of the New York Mercantile Exchange fell $5.30 to settle at $1,604.20 an ounce.
Speaking to Reuters, David Wilson, Metals Strategist at Citigroup, said that there is general perception that things are getting better in China and in the U.S., so the argument would be why would you hold gold when there are signs of macroeconomic improvement? Wilson further said that it seems investor money is generally going into other assets including equities at the moment, and metals seem to be detaching from that.
Silver prices fell sharply on Tuesday, with spot silver dropping 1.6% to around $29.40 an ounce.
In late trading on Tuesday, the iShares Silver Trust (ETF) (NYSE: SLV) was down 1.32% to $28.47, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 2.59% to $40.99, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was up 2.51% to $51.85.
Platinum and palladium were flat on Tuesday. At last check, spot platinum was trading at around $1,692.50 an ounce, while spot palladium was trading at around $761 an ounce.
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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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