Stock Market Watch

Gold and Silver Prices Gain as Euro Strengthens

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Gold and silver prices are gaining in trading today as the euro continues to strengthen against the U.S. dollar amid hopes that Greece will complete a bond swap deal with its private creditors.

At last check, spot gold was trading 0.7% higher at $1,696.56 an ounce. Gold futures for delivery in April on the Comex division of the New York Mercantile Exchange are currently trading 0.71% higher at $1,695.80 an ounce.


Matthew Turner, analyst at Mitsubishi, told Reuters that gold has lost some direction. Turner said that the price at $1,700 an ounce is high historically and gains are going to be difficult to come by unless there is some big event.

Gold prices rose sharply earlier this year on hopes that the Federal Reserve will implement a third round of quantitative easing. The hopes were dashed after the Federal Reserve Chairman last week said that the central bank had no plans for additional quantitative easing. This pushed gold prices sharply lower in the last few days.

On Wednesday, the Wall Street Journal, citing people familiar with the situation, reported that should the Fed decide to buy more bonds to boost growth, it could borrow back the money it used to buy the bonds for short periods of times at low interest rates, thereby taking money out of circulation and lowering the risk of any future inflation.

Silver prices are also gaining for a second day in a row. At last check, spot silver was trading 1.05% higher at $33.73 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.83% higher at $32.68, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 1.81% higher at $59.51, and ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 2.09% lower at $9.82.

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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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