Stock Market Watch

Gold Prices Slightly Down, Silver Prices Plunge More Than 1.50%

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Gold prices eased during Asian trading hours on Tuesday as investors remained on the sidelines ahead of the release of minutes from the Silver prices also fell in early trading on Tuesday.

Bullion investors expect the minutes from Federal open market committee (FOMC held July 30-30) will offer some clue on when policymakers intend to start pulling back its gold-supportive, bond purchase program. The Fed is scheduled to release its minutes on Wednesday.

At last check, gold futures for December delivery slid 0.15% to $1,363.60 an ounce while spot gold inched down 0.08% to $1,364.41 an ounce.

Meanwhile, soaring yields on U.S. bonds suggest that the market participants expect the Fed to soon announce the start of the tapering process.

On Monday, yields on 10-year treasuries neared 3%, which is two-year high level while equity markets continued to slide. In emerging markets, the local currencies and stocks have been hammered in past few sessions as investors retreated in droves.

Commenting over possible tapering of the bond purchase program and its implication on gold prices, Edward Meir, analyst at INTL FCStone said, “Once September rolls around, gold’s upside becomes more suspect and we could be in store for a much more concerted decline as we think that the Fed will indeed deliver its first tapering installment,” according to Reuters.

The physical side demand in China also eased on Tuesday, said traders, according to Reuters.

In some other precious metal markets, platinum futures for October delivery added 0.11% 1510.70 an ounce while palladium for September contract fell 0.29% to $750.70 an ounce.

Silver futures plunged 1.59% to $22.84 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.09%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was inactive.

 

 








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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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