Stock Market Watch

Gold, Silver Prices Edge Lower

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Gold prices pared earlier gains to edged lower during Asian trading hours on Tuesday as investors are relatively reluctant to take bets on safe-haven assets amid widely held notion that the U.S., will not default on its debt. Silver prices also edged lower in early trading on Tuesday.

At last check, gold futures for December delivery edged down 0.20% to $1,322.50 an ounce while spot gold inched up 0.05% to $1,321.90 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) slipped 0.11% in premarket trading to $127.50.

Silver futures fell 0.25% to $22.33 an ounce.

Earlier on Monday, gold prices jumped more than 1% as broadly lower dollar and weakness in equity markets prompted investors to seek safety in bullion. Nonetheless, the metal’s safe-haven appeal has mainly failed to burnish unlike September 2011, when bullion prices touched a record high of $1,920 due to U.S. fiscal policy and euro zone concerns.

Market participants are hoping that lawmakers will prevent historic default by reaching an eleventh hour agreement.

Moody’s chief, Raymond McDaniel has already ruled out U.S. debt default.

echoing McDaniel’s though, Alexis Garatti, a macroeconomist at Haitong International Research in Hong Kong, said,” There won’t be any default on the U.S. debt as I don’t think Congress will want to take that risk,” according to Reuters.

“We will probably have a last minute agreement,” added Garatti.

Meanwhile, the physical side demand in Asia is poised to improve. China, which was shut last week due to national holiday, resumed trading from Monday.

According to Reuters, dealers in Hong Kong said that they were witnessing good buying interest from China.

 








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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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