Amid a massive stock sell-off in Wall Street, gold and silver prices surprisingly continue to edge lower.
The safe-haven assets are weighed down by successive setbacks in the US politics, supported by a relatively strong US dollar.
The greenback is currently posing for bullish territory at a 0.8% increase.
The bullion slumped 2.1%, low trading at $1,909.05 per ounce on the latest figures. The precious metal recorded a 3% fall in one point of the trading session.
Gold futures for October deliveries slashed $23.60 which translates to a 2.6% drop, currently trading at $1,929.60 per ounce.
Similarly, silver recorded a more disturbing fall of 8.3% to $24.53 per ounce. Consequently, December Comex silver slashed $0.694 to $26.435 per ounce.
As asserted by a senior market strategist, the Wall Street sell-off should have resulted in higher demand for metals. Major indices all edged lower, recording their third straight week of low.
This has been the stock market’s lowest level in nearly seven weeks.
However, current figures tell otherwise. Investors are currently selling off assets on all boards, even the gold and silver prices are affected.
As shown in the metal commodity charts, there is a lack of safe-haven buying. To add an insult to the injury, the Congress is still impasse on the next stimulus bill, narrowing the chance for its adoption within the year.
The US Congress remains uncompromising on the supposed fifth coronavirus-response bill’s size, on top of the previous $3 trillion pandemic relief bill.
According to a market expert, the short-term tumbling back-and-forth on $1,900 may likely reach an end, with precious metal may trade lower at $1,863 anytime soon.
Bullion’s Stocks and other Metals Traded Lower
Currently, the gold price is down nearly 10% from their record-highs in August.
However, today’s damage to gold price is relatively “light” compared to the surge that the metal experienced in through the year.
In a report released, gold investors are believed to urge miners’ changes as performance continues to “fall short” from expectations.
This happened in the time when the bullion recorded a year-to-date rally of 24%.
Gold mining stocks also fared lower.
Newmont Corporation, the world’s largest mining company, slashed 2.3% from its current market value of $52 billion.
Similarly, Barrick Gold Corporation also recorded 2.6% losses from the company’s $50 billion valuation.
As US and European stocks fall hard amid shady dealings of the world’s leading bankers, precious metal stocks surprisingly dropped.
Other metals also played in the red.
Platinum recorded a sharp drop of 8% in one point of the session, finally retracing the gap to a 5.2% drop in trading close. Palladium also retreated by 3.9% to $2,265.10.
Similarly, copper prices dropped by 3% after recording its two-year highs on last week’s close. Nevertheless, it managed to retain the $3.00 a pound level.
Copper futures for December delivery traded in contango at $3.0135 per pound or $6,645 a tonne.
Gold and silver prices will not pose for the bullish territory as long as the market remains volatile.