Gold Prices On Course To Post Worst weekly Performance in last 8 weeks, Silver Prices Down As Well


Gold prices continued to get walloped during Asian trading hours on Friday as fears over any military conflict in Syria almost subsided while widespread speculation that the Federal Reserve will start narrowing the bond purchase program soon also weighed on the demand. Silver prices have also edged lower in early trading on Friday.

At last check, gold futures for December delivery plunged 1.29% to $1,313.40 an ounce while spot gold edged down 0.66% to $1,311.46 an ounce.

Bullion is on course to post its worst weekly performance in last two months.

SPDR Gold Trust (ETF) (NYSE: GLD) was last down 0.76% to $126.70 in premarket trading.

Silver futures fell 1.87% to $21.73 an ounce.

Bullion, which touched a three-week low level on Thursday due to a technical sell-off, came under more pressure earlier today after Russia and the U.S jointly agreed to push diplomatic dialogue again which will aim at ending a civil war in Syria. In addition, Damascus was also inducted to anti-chemical arms convention.

The Fed, which meets for its next open market committee meeting on Sept. 17-18, is expected to initially trim its $85 billion worth monthly bond purchase program by $10 to $15 billion, according to economists/ Reuters poll.

Higher interest rates due to tighter monetary policy will dive away investors from gold as the metal is a non-interest bearing asset.

However, the physical side demand from Asia can improve as dealers may try to capitalize on recent dips.

Speaking to Reuters, a Hong Kong based dealer said, “At current price levels, we can see some physical buying interest from local buyers in Hong Kong and China. Both jewelers and retail investors are coming to buy.”

 








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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.

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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