Gold and Silver Prices Recover after Thursday’s Losses
Gold and silver prices have recovered after Thursday’s significant losses; however, gains have been marginal in early trading. Gold prices posted their biggest one-day drop in almost three months on Thursday. Silver prices, meanwhile, fell more than 4%.
Gold slipped on Thursday after investors were disappointed with lack of action from the Federal Reserve. The Fed on Wednesday announced that it is extending its Operation Twist program. However, investors were hoping for more aggressive monetary easing from the central bank.
Speaking to Reuters, Nic Brown, analyst at Natixis, said that since August, September, gold has been trading like any other commodity and the one thing that will support prices this year is the potential for further aggressive monetary stimulus in the U.S., whether it is QE or a new policy. Brown said that while the Fed had chosen not to pursue aggressive stimulus measures, poor economic data from Europe, China and U.S. on Thursday suggested continued pressure for some sort of action.
At last check, spot gold prices were trading 0.23% higher at $1,569 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange are down 0.3% to $1,570.20 an ounce.
Investment bank Fairfax today said in a research note that the recent sell-off in gold could well prove to be excessive if risk aversion rises in the coming months.
Silver prices are also gaining in early trading today. At last check, spot silver was trading 0.04% higher at $26.85 an ounce.
The gold/silver ratio today rose to its highest level since October.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is down 0.31% to $26.04, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 0.73% to $36.49, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is up 0.63% to $71.57.
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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.
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