Stock Market Watch

Gold and Silver Prices in Green as Dollar Retreats

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Gold and silver prices are gaining in trading today after Tuesday’s sell-off as the U.S. dollar retreated. Gold prices have been also boosted by physical demand in Asia.

At last check, spot gold was trading 0.23% higher at $1,677.84 an ounce. Gold futures for delivery in April on the Comex division of the New York Mercantile Exchange are currently trading 0.48% higher at $1,680.20 an ounce.


Ole Hansen, Vice President at Saxo Bank, told Reuters that open interest has fallen dramatically over the last week, indicating that many if not most of the longs that were initiated above $1,700 during the last month have been closed down. Hansen said that the Bernanke move from January 25 has been wiped out and we are back to square one. He noted that technically, last week’s close is still pointing towards a deeper correction, but he thinks decent support should come towards $1,656 an ounce, which a 50% retracement of the 2012 rally.

Hansen said that overall, investors will have to get used to lower performances as the corrections these past few months may have dented many people’s love affair with gold.

Silver prices are also rebounding after Tuesday’s sell-off. At last check, spot silver was trading 0.18% higher at $32.97 an ounce.

In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is up 0.19% to $32.08, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is up 0.77% to $57.42, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is down 0.49% to $10.22.

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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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