Gold Prices and Silver Prices Edge Higher

Gold prices recovered on Thursday, after sliding for three straight sessions as euro strengthened after Spain’s move to shore up struggling banking sector along with euro-zone’s agreement over fresh bailout payments to Greece allied investors’ concerns over euro-zone. Meanwhile, consensus seems to building in Greece over forming a coalition government. Silver prices are also gaining in mid-day trading.

At last check, U.S. Gold edged up 0.13% at $1596.30 an ounce

Gold prices have fallen by 3 percent this week as renewed fears over euro-zone debt crisis weighed on euro and other riskier assets. Whereas gold was perceived as safe haven asset during the debt crisis in 2011, this year it has moved in tandem with other riskier assets like commodities, and dollars.

According to Anne-Laure Tremblay, an analyst at BNP Paribas, the yellow metal is trading more like a riskier asset than safe haven asset.

“While the U.S. dollar has gained on the back of higher risk aversion, gold was sold off. The decline is likely a consequence of liquidation in the paper market rather than lack of interest on the physical side,” added Tremblay, speaking to Reuters.

Earlier on Thursday, euro pared recent loses, and gained against dollar after losing for eight straight sessions.

The euro got boost as fear over Spanish banking system was abated with Spanish Government taking majority stake in Bankia-one of the country’s largest bank, even as an agreement among euro-zone nations to provide fresh bailout payment of 5.2 billion euro to Greece, dispelled concerns that monetary Union is heading for a split.

India’s Gold Imports Decline

On Thursday, India’s trade secretary said that country’s gold import in April fell to $3.1billion, down from last year’s $4.7 billion, in the same period. Demand for gold shrunk due to weakness in Indian rupee, high spot prices and high excise and import duties-imposed by Indian government in March. However, the Indian Government scrapped excise duty on Jewelry this week; a move which could bolster gold’s demand.

Silver also inched higher 0.17%, at $29.29 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading flat at $28.38, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 0.32% higher at $44.15, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 0.24% lower at $12.62.

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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.