Stock Market Watch

Gold Prices Down, Silver Prices Gain

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Gold prices slipped during Asian trading hours on Tuesday but continued to hover near three-week high level as pause in unprecedented outflows from gold backed exchange traded funds and improving demand for both the metal and silver in China supported the sentiment. Silver prices, meanwhile, edged higher in early trading on Tuesday.

At last check, gold futures for December delivery fell 0.50% to $1,327.50 an ounce while spot gold edged down 0.67% to $1,326.79 an ounce.

Bullion prices rallied on Monday reaching its three-week high level after news emerged that the holdings of the SPDR Gold Trust rose for the first time in last two months on Friday.

All the top gold backed exchange traded funds have reported continued outflows all through this year as investors left the bullion market in hordes fearing imminent tapering of the Federal Reserve’s quantitative easing.

“The sentiment in gold has definitely improved recently,” said Danny Laidler, head of ETF Securities’ Australia and New Zealand business,” according to Reuters.

“The massive redemptions we saw in April have reduced every month. Hopefully the large outflows have stopped,” added Laidler.

Traders said that short coverings on Monday also helped the metal to extend gains. There was a speculation that the gold prices could fall sharply in the near future as traders expected the winding down of the economic stimulating measures by the Fed.

However, rising concerns over the impact of debt-ceiling on the U.S. economy along with reports that China’s gold imports soared in the first six months of this year, prompted investors to cover short positions.

Silver futures gained 0.45% to $21.43 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.24%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 1.20%.








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edliston
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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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.

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