Silver and Gold Breathe as Stocks Pare Losses – Asia Market Wrap

Gold and silver recovered from their biggest selloffs in years, and Asian markets reduced losses following a lacklustre performance on Wall Street.

Gold recovered following a 2.9% slump on Tuesday, the largest intraday decrease in more than a dozen years. Silver climbed higher after falling by 7.1% the previous session.

A barometer of Asian shares fell 0.2% after falling earlier. The weakening in the region’s stock markets was caused in part by the sale of precious metals shares from Australia to Indonesia and China. US stock futures edged higher in Asia after the S&P 500 Index closed slightly changed.

The Dollar and Treasuries remained relatively steady. Oil prices rose following reports that the US and India are negotiating a trade agreement that would see the South Asian country gradually reduce its purchases of Russian crude.

The renewed emphasis on precious metals followed a quick gain earlier this year, fuelled by central bank-led buying and concerns about budgetary troubles in industrialised countries. The slumps also occurred after technical signs indicated that the recent blistering rallies were likely overextended.