MK: Gold Prices Extend Losses, Silver Prices Also Tumble
What is the gold price today? Gold futures tumbled more than 1% in Asian trading hours on Friday and were on course to post worst weekly performance since late February as demand for safe haven bets remained extremely weak at a time when major U.S. averages are hovering near fresh all-time-highs amid improving macroeconomic indicators. Silver prices also fell sharply in early trading on Friday.
» Track Gold and Silver Prices
In addition, continuous outflows from world’s top gold-backed exchange traded fund, SPDR Gold Trust (ETF) (NYSE: GLD) and growing possibility of sooner than expected halt of the Fed’s multi-billion bond purchase program is keeping bullion investors at bay.
At last check, gold futures for June delivery plunged 1.12% to $1,547.30 while spot gold fell 0.83% to $1547.76 an ounce. Silver futures tumbled 1.42% to $27.30 an ounce
Speaking to CNBC on Friday, Charles Plosser, President Federal Reserve Bank of Philadelphia said, “I don't think it's having a very big impact, but it's also creating risks and challenges for us in the future.”
Plosser along with Dallas Federal Reserve President Richard Fisher, remain biggest critics of the ongoing $85 billion worth monthly bond purchase program, citing costs of ultra-loose monetary policy outweigh benefits.
The Federal Reserve’s minutes from its latest FOMC showed that some of the policymakers were in favor of scaling down the QE3 by the mid-year and completely halting it by the year-end.
Tensions over North Korea missiles program and growing confusion over Cyprus bailout requirements also failed to trigger the demand for safe-haven bets. Some media reports suggested that Cyprus is seeking another euro 10 billion for keeping its financial system running.
“Normally, given a rising tension, there will be flight to safety and gold will benefit. But I suppose at this point, while we are mindful of the increased risk, nobody really believes that the North Koreans will actually carry through on their threats,” said Seng Wun, CIMB regional economist, according to Reuters.
