Stock Market Watch

Gold and Silver Prices Remain in Red

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Gold and silver prices have remained in red in mid-day trading today as investors remain cautious ahead of the crucial European Union summit on Friday.

Ahead of the summit, the French President Nicolas Sarkozy and the German Chancellor Angela Merkel are meeting in Paris to outline a plan on moving the euro zone into a fiscal union. France and Germany are expected to push for a closer fiscal union among euro zone countries at Friday’s summit, a move that is likely to prompt the European Central Bank (ECB) to make a stronger intervention in the bond markets to bring down borrowing costs for Italy and Spain.


Nic Brown, analyst at Natixis, told CNBC today politicians across the board recognize there is a huge issue here that needs sorting out. Brown said that whether Europe can deliver is still an open question and there is likely to be a fair amount of volatility on the political front this week.

At last check, spot gold prices were down 0.8% to $1,731.84 an ounce. Spot prices have fluctuated between gains and losses today. Last week, prices rose nearly 4%.

Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange were down 0.92% to $1,735.10 an ounce, at last check.

Eugen Weinberg, analyst at Commerzbank, told CNBC earlier today that should sentiment improve further in the market it would not be surprising if gold falls again but it may also come under pressure if the rest of commodity sector comes under pressure.

Gold ETFs are mixed in mid-day trading. At last check, the SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.75% to $168.64, the Market Vectors ETF Trust (NYSE: GDX) was up 0.98% to $58.64, and the iShares Gold Trust (ETF) (NYSE: IAU) was down 0.76% to $16.90.

Spot silver prices are currently down 0.46% to $32.41 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.19% lower at $31.58, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 0.34% lower at $59.07.

The ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 0.32% higher at $12.36.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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