Stock Market Watch

Gold Prices Up But Struggle To Cross $1,400, Silver Prices Gain As Well

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Gold prices edged up during Asian trading hours on Thursday, supported by some bargain hunting, which ensued following previous session’s rout; however, gains are likely to be capped as bullion investors wait for the Friday’s all-important job data (non-farm payrolls). Silver prices have also edged higher in early trading on Thursday.

The data might provide strong clue on whether the Federal Reserve could start tapering of bond purchases from September or wait for some more time.

At last check, gold futures for December delivery gained 0.34% to $1,394.70 an ounce while spot gold added 0.24% to $1,394.15 an ounce.

Both gold and silver prices were hammered in the previous session. While easing concerns over any immediate U.S led military intervention over Syria dented the metal’s safe haven appeal, a spate of solid economic data in the recent past has fanned speculation that the tapering of the quantitative easing is just around the corner.

A pullback in quantitative easing will increase interest rates which in turn prompt investors to shun non-interest bearing assets such as gold.

“I think the most prominent issue is the U.S. Federal Reserve meeting. The economy seems to be expanding – that provides the ground for them to taper the stimulus,” said Joyce Liu, an investment analyst at Phillip Futures in Singapore, according to Reuters.

Liu also added said that gold prices could touch as low as $1,353 should prices break below the key support level of $1,380 an ounce.

Silver futures edged up 0.77% to $23.59 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.18%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.79%.








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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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