Gold Prices Fall Sharply; Silver Prices also Tumble

Gold prices fell sharply in trading on Wednesday as the U.S. dollar strengthened. Silver prices also fell sharply.

Gold prices had climbed to a one-month high on Tuesday as concerns over an early-end to Federal Reserve’s bond buying program eased a little. However, the precious metal reversed some of its recent gains on profit booking.

Speaking to Reuters, Afshin Nabavi, Head of Trading at MKS, said that this is a breather we desperately needed. Nabavi believes that $1,300-$1,350 an ounce ought to remain the range until August 2’s non-farm payrolls data. He added that if the number is bad for the dollar, then gold prices could test $1,400 an ounce. Nabavi noted that $1,300 an ounce will remain a strong support for the precious metal.

At last check on Wednesday, spot gold prices were down 2.2% to $1,317 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange were down 1.2% to $1,318 an ounce, at last check.

Silver prices also fell sharply on Wednesday. At last check, silver prices were down 2.20% to $20 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 1.82% to $19.41, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 3.47% to $17.81.

Platinum and palladium edged higher on Wednesday. At last check, spot platinum was up 0.3% to $1,443 an ounce. Spot palladium was last trading at $742 an ounce, up 0.40%.

 

edliston

edliston

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.