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Metal prices fell early in the session on Friday before stabilizing.
Metal prices fell early in the session on Friday before stabilizing. Gold and silver prices were affected late this week by the news that the US Federal Reserve will continue its stimulus program for now, Reuters reported. Yet, investors know tapering will come sooner or later, and they took their gains today after gold prices increased during the last two sessions.
“Gold prices have the tendency to edge higher on dovish central bank messages but the impact is rather limited,” ABN Amro analyst Georgette Boele told Reuters. “Everyone knows this is just a delay and the tapering will happen sooner or later,” she added. “When you have a stronger economy, the market will start anticipating an increase in interest rates, and that’s not positive for gold.”
Spot gold dropped $3.85 to hit $1,283.81 an ounce earlier in the session. It later rose slightly, to $1,287.86 an ounce, unchanged from the previous session. US gold futures for December delivery were also down early today, to $1,283.30 an ounce, before stabilizing at $1,286.50, up $0.40.
Silver prices were unchanged as well at $20.74 after falling earlier in the session to $20.69 an ounce, according to Reuters. Metal prices were impacted later in the session by a falling dollar.
Copper prices were down in London today. On the London Metal Exchange, three-month copper prices fell $27.85 to $6,962.75 a tonne, Business Standard reported.
On the COMEX in New York, copper futures for December delivery were unchanged from the previous session at $3.16 a pound, The Wall Street Journal said. China — the world’s largest copper consumer — recently released new information on possible social and economic reforms, but traders doubt the country’s commitment to infrastructure expansion.
“There are doubts circulating about Chinese commitment to infrastructure expansion that are currently undermining confidence,” Michael Turek, director of metals trading with Newedge, told the WSJ.
Brent crude oil prices, however, were showing signs of improvement this week, holding above $108 a barrel today. Brent crude increased $0.03, to $108.31 a barrel, Reuters reported. Prices are set to increase 3 percent this week thanks to news the Fed will maintain its stimulus program for the time being.
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