Gold Prices Up, Silver Prices Also Gain
Gold prices edged higher during Asian trading hours on Wednesday, paring previous session’s losses. Silver prices also edged higher in early trading on Wednesday.
At last check, U.S. gold futures for June delivery gained 0.85% to $1,420.80 an ounce while spot gold advanced 0.64% to $1,421.31 an ounce.
On Tuesday, gold futures’ three-day winning streak was snapped after the U.S. dollar gained sharply against all major traded currencies, making gold expensive for traders dealing in currencies other than the US dollar
A decent US housing market data while a rally in equity markets thanks to a spate of reasonably satisfactory earnings reports from blue chip companies drifted investors away towards better performing assets.
Gold is on course to shed 12% this month as constant outflows from gold-backed ETFs and several banks slashing their average price outlook, has put heavy sell-off pressure.
A data provided by Reuters showed that holdings of the world’s largest gold-backed ETF, the SPDR Gold Trust (ETF) (NYSE: GLD), fell to three and half year low on Tuesday. The fund’s holdings fell another 1.6% to 35.51 million ounces on Monday, which was a lowest level since November 2009, showed a data provided by Reuters.
Meanwhile, Goldman Sachs, after withdrawing its recommendation to “short” gold, suggested clients to cut their positions on lower prices on Tuesday.
Earlier on April, Goldman Sachs slashed its both short-term and long-term price outlook after the metal entered the “bear” market territory.
However, the metal found some support on Wednesday after the euro bounced back against the greenback following the release of
Silver futures edged up 0.32% to $22.89 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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