Stock Market Watch

Gold and Silver Prices in Red as Euro Retreats from Session Highs

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Gold and silver prices have fallen in mid-day trading today after the euro retreated from session highs against the U.S. dollar. The single currency slipped following the release of some strong U.S. economic data.

At last check, spot gold was trading 0.56% lower at $1,650.21 an ounce. Earlier in the day, spot gold prices had risen to $1,669.75 an ounce as successful Spanish and French bond auctions lifted sentiments.


Saxo Bank Senior Manager Ole Hansen told Reuters that booking some profit after a strong run makes sense and the rally is not overdone and will continue. However, Hansen said that we need to retrace, have the support below confirmed before the next attempt. He also said that the euro rally could be running out of steam ahead of $1.30.

The euro pared earlier gains against the dollar after jobless claims in the U.S. fell to a four-year low.

Investors’ sentiment has been lifted after reports on Wednesday that the International Monetary Fund is looking to more than double its lending resources. In a research note, Standard Bank today said that despite the U.S. and U.K. saying that they would not commit to such a move, the market took heart that this would help ease the fiscal problems facing the euro zone. Standard Bank further said that the renewed confidence has seen markets adopt a cautious risk-on stance, pulling the dollar down and consequently easing downward pressure on precious metals and commodities in general.

Silver prices are also down in trading currently. At last check, spot silver was down 0.43% to $30.36 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.17% lower at $29.60, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 0.40% lower at $50, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 0.16% higher at $12.89.

 

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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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