Gold and Silver Prices Remain in Green
Gold prices are trading higher currently, and are on course for weekly gains as stronger euro has bolstered the demand for metal. Silver prices are also gaining in mid-day trading.
Earlier on Thursday, the yellow metal prices took the biggest one-day leap since January 25, helping it to recover some lost ground. The week has seen some high amount of volatility in the bullion market with metal touching its year-to-date low on Wednesday and losing some 20% since last September when metal touched an all time high of $1,920 an ounce.
At last check, gold futures were up 1.15%, trading at $1593.00 an ounce.
With two days of successive gains, gold investors are curious to know whether the metal will rally from now onwards. According to UBS note, it’s too early to anticipate about any possible rally in the bullion market. “To see a return of gold reacting positively to macro stresses is indeed refreshing, but it is still far too early to make any firm conclusions from here that gold has indeed turned the corner”, stated UBS note.
“Momentum will be the key, and follow-through buying will have to kick in to encourage investors to jump in. More importantly, gold’s reaction function will have to consistently exhibit its safe haven properties, and do so for some time to attract strategic buying,” added the note.
In some other precious metal markets, silver futures were gaining 2.19 percent, trading at $28.63 an ounce.
The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 2.13% higher at $27.82, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 4.27% higher at $42.22, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 4.57% lower at $64.91.
The gold/silver ratio- a gauge on number of silver ounces required to buy an ounce of gold-fell from its highest since late December as silver outperformed gold in a rising market, to around 56.
Spot platinum added 0.5 percent to $1,460.60 an ounce, while spot palladium edged lower 0.14 percent to $605.00 an ounce.
According to Reuters both platinum and palladium have underperformed against rising gold prices with gold/platinum ratio rising to a 31/2 month high, at 1.09.
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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. |