Gold prices likely to trade on negative note: Sushil Fin
London (Nov 3) Gold and silver sank to their lowest since 2010 on Friday as the dollar surged against the yen and other major currencies after the Bank of Japan shocked global financial markets by expanding its massive stimulus spending.
Spot gold broke below $1,180 an ounce, a level bullion had held twice during its last two major sell-offs in June and December last year. It also briefly held the mark earlier this month until Friday's drop.
The yen plunged to a near seven-year low against the U.S. dollar on Friday, putting it on track for its worst day in 18 months, after the Bank of Japan shocked financial markets with an aggressive easing of its monetary policy.
We expect gold prices are likely to trade on negative note on the back of strong economic data from the US and surprise stimulus by BoJ.
Spot silver earlier fell 4 percent to its lowest since February 2010 at $15.76 an ounce and was poised for a fourth straight monthly drop. It was down 1.71 percent at $16.14.
A smaller trade deficit and surge in defense spending buoyed U.S. economic growth in the third quarter, but domestic demand slipped, hinting at some loss of momentum.
Gross domestic product grew at a 3.5 percent annual pace, the Commerce Department said on Thursday. However, the pace of growth in business investment, housing and consumer spending slowed from the second quarter.
We expect Silver prices are likely to trade on negative note on the back of strong economic data from the US and surprise stimulus by BoJ.