Stock Market Watch

Gold and Silver Prices Remain in Red in Mid-Day Trading

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Gold and silver prices have remained in red in mid-day trading as worries about the euro zone debt crisis continue to weigh down sentiments. Gold and silver prices fell as the euro came under pressure after breakdown of talks between euro zone finance ministers and Greece’s private creditors.

At last check, spot gold was trading 0.7% lower at $1,665.05 an ounce.


Despite today’s drop, gold has done well so far this year. Gold has benefited from physical demand from key markets in Asia. Demand from central banks has also been robust.

James Steel, analyst at HSBC, said in a research note today that the outlook for central bank gold purchases remains positive for this year based on the likelihood that emerging markets central banks will continue to diversify away from the U.S. dollar. Steel said that since U.S. dollar foreign exchange holdings are already at record levels in many countries, the nations will seek to increase gold reserves in a bid to diversify their USD-laden reserves. Steel noted that while HSBC does not expect official sector activity to move the market near term, it regards central bank purchases as a bulwark of the long-run gold rally.

Gold ETFs are also lower in trading today. At last check, the SPDR Gold Trust (ETF) (NYSE: GLD) was trading 0.81% lower at $161.84, the Market Vectors ETF Trust (NYSE: GDX) was trading 1.70% lower at $52.11, and the iShares Gold Trust (ETF) (NYSE: IAU) was trading 0.86% lower at $16.23.

Silver prices have also eased in trading today after rising sharply in the previous two trading sessions. At last check, spot silver was trading 1.05% lower at $31.98 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.96% lower at $31.09, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.17% lower at $54.90, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 2.13% higher at $11.52.

 

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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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