Stock Market Watch

Gold Prices Slip on Euro Zone Downgrade Risk; Silver Prices Rebound

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Gold prices have slipped in trading today as investors remain cautious after Standard & Poor’s issued a warning late Monday that it may downgrade the credit rating of 15 euro zone countries, including Germany. However, silver prices have rebounded and are sharply higher in mid-day trading.

Gold is headed for a second straight day of losses and is one again tracking riskier assets such as equities. Late Monday, S&P said that it may cut the credit ratings of euro zone countries due to the systemic risk posed by the ongoing debt crisis in the euro zone. The rating agency said that it would review the ratings of euro zone countries after Friday’s crucial European Union summit, where France and Germany are expected to push for closer fiscal ties among euro zone countries.


Gold has also come under pressure due to technical selling from traders. On Monday, gold fell below a key support at its 100-day moving average.

Carlos Perez-Santalla, Precious Metals Broker at PVM Futures Inc., told CNBC today that technically, the longer-term charts have been favoring the bears and consolidation looks to be the mode with last week’s range of $1,700-$1,760 as the boundaries. Perez-Santalla also said that end-of-year trading mode may be at play as many traders are looking to hold on to what gains they have for the year.

At last check, spot gold prices were trading 0.1% lower at $1,723.49 an ounce, following a decline of 1.4% in the previous session. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange fell 0.8% to $1,719.40 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) is currently trading 0.44% higher at $168.06, while the Market Vectors ETF Trust (NYSE: GDX) is currently trading 1.57% higher at $58.77. The iShares Gold Trust (ETF) (NYSE: IAU) is currently trading 0.42% higher at $16.85.

Silver prices are currently trading 1.5% higher at $32.53 an ounce. The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 2.58% higher at $31.85, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 5.31% higher at $59.93, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 5.40% lower at $12.09.

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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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