Gold Prices Settles Higher; Silver Prices also Slip
Gold prices settled higher on Wednesday as weakness in global equity markets, ahead of the Silver prices also moved lower in trading on Wednesday.
Gold futures for August delivery added $7.10 or 0.5% to settle at $1,374 an ounce while spot gold was last up 0.4% to $1,373 an ounce.
Gold prices have been under pressure since May after the Fed Chairman Ben Bernanke said that the bank could start winding down its $85 billion worth monthly bond purchase program, should the job and housing market showed signs of significant improvement.
However, according to most economists, the Fed is likely to continue with its economic stimulating measures for the time being but keep its option open to taper the bond purchase program in coming months should the labor market improves further.
In a note to clients, Saxo Bank Vice President Ole Hansen said on Wednesday, “Bottom line, we expect no tapering on the basis that current economic data don’t support such a move,” according to Reuters.
“Ahead of (the policy rate announcement), I see gold potentially retracing some of its losses from yesterday,” added Hansen.
Meanwhile, holdings of the SPDR Gold Trust (ETF) (NYSE: GLD) fell 0.2% to 1,001.67 tons on Tuesday, showed a data provided by Reuters. The holdings are now at more than four year low level.
Silver futures were last down 0.36% to $21.60 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.19%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.29%.
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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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