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Gold Prices Sheds More Than 1%; Silver Prices Flat

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Gold prices fell about 1% on Tuesday as previous session’s rally came to a halt due to a broadly higher U.S. dollar. Reports that the government of India has further hiked import duties on gold also weighed on the sentiment. Silver prices were flat in trading on Tuesday.

At last check, gold futures for December delivery fell 1.03% to $1,320.50 an ounce while spot gold plunged 1.15% to $1,320.39 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was down 1.15% to $127.64.

Silver futures were flat at $21.34, at last check.

The U.S. dollar traded higher against a basket of rival currencies on Tuesday even as investors remained uncertain as to when the Federal Reserve might start tapering its multi-billion dollar asset purchase program.

Earlier today, the U.S. retail sales data for July showed mixed outcome. While the core retail sales rose more-than-expected in July, overall retail sales missed economists’ forecast.

Although several Fed officials have hinted in the recent past that the winding down of economic stimulating measures could start soon, if the economic indicators show significant improvement; some recent data releases are inconclusive to decide whether the economy is improving at a steady pace.

Addressing to reporters, Atlanta’s Fed President Dennis Lockhart also said today that it was difficult to predict exactly when the tapering could start, given the fact that the economic indicators have been uneven lately.

Meanwhile, the Indian government raised import duties on gold for the third time in last eight months on Tuesday. The import duties were increased to 10% from 8%. The widening current account deficit is prompting the Indian government to raise import barriers.

 








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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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