Stock Market Watch

Weaker Dollar Boosts Gold And Silver Prices

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Gold prices edged higher during Asian trading hours on Friday as broadly weaker dollar supported the demand; however gains are likely to be capped as investors remain reluctant to take fresh positions due to uncertainty over the Silver prices also edged higher in early trading on Friday.

At last check, gold futures for December delivery edged up 0.71% to $1,333.50 an ounce while spot gold added 0.89% to 1,334.90 an ounce.

SPDR Gold Trust (ETF) (NYSE: GLD) gained 0.77% in premarket trading to $128.78.

Silver futures edged up 0.29% to $21.83 an ounce.

The dollar Index edged lower on Friday due to continued policy-paralysis in Washington over the debt-ceiling issue. The policy logjam has supported metal’s safe-haven appeal somewhat.

Gold prices touched a record high of $1,920 in September 2011 when both euro zone debt crisis and U.S. monetary policy concerns prompted investors to seek safety in gold.

Commenting over lack of momentum in the gold market, Saxo Bank’s head of Commodity research, Ole Hansen said “Many traders are sidelined at the moment as a general level of confusion exits,”

“Support is obviously coming from the U.S., where lawmakers are once again playing Russian roulette with the budget and debt limit, added Hansen.

Meanwhile, the physical side demand in Asia continues to remain weak. Orders from China have eased as the nation will remain shut on Oct. 17 due to a national holiday.

Speaking to Reuters, a Hong Kong based precious metal dealer said, “People are postponing shipments to the later part of October. Right now demand is very quiet over there.”

 








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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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