Gold Prices Rise Sharply; Silver Prices also Rally
Gold prices rose sharply on Tuesday as the U.S. dollar weakened. Silver prices also rose sharply on Tuesday.
Gold prices gained even as investors wait for the outcome of the U.S. Presidential elections. Speaking to Reuters, Jonathon Jossen, a Comex gold options floor trader, said that gold rallied in oversold conditions because early poll indications suggested Obama could win, and that bolstered hopes of Bernanke and Fed stimulus.
Republican Presidential candidate Mitt Romney has been critical of Fed Chairman Ben Bernanke’s monetary policy and if he is elected it is unlikely that the Bernanke would be nominated for another term in 2014. This could create some uncertainty over monetary policy and will be bearish for gold. An Obama win, meanwhile, is seen as bullish for gold. However, polls suggest a tight race, with the outcome depending on swing states.
Spot gold rose 2% on Tuesday to $1,717.09 an ounce even as investors waited for the results of the Presidential election. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange settled $30.8 higher at $1,714 an ounce.
Silver prices also rallied on Tuesday, with spot silver gaining 2.5% to $31.93 an ounce.
In late trading on Tuesday, the iShares Silver Trust (ETF) (NYSE: SLV) was up 2.55%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 4.90%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was down 4.98%.
Platinum and palladium also edged higher. At last check, spot platinum was trading 0.72% higher at $1,550.25 an ounce, while spot palladium was trading 1.31% higher at $616.97 an ounce.
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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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