Stock Market Watch

Gold and Silver Prices Continue to Slide

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Gold and silver prices are continuing to slide in mid-day trading, extending their losses from Tuesday. Gold is falling as the momentum fueled by comments from Ben Bernanke on Monday faded.

At last check, spot gold was trading 0.92% lower at $1,664.61 an ounce.


Pradeep Unni, Richcomm Global Services, told Reuters that the Fed comments has given much-needed stimulus to an otherwise lackluster, rangebound gold market. Unni said that resistance at $1694-$1700 is formidable, but in the coming sessions, we could see that being scythed convincingly.

Meanwhile, Goldman Sachs said in a research report today that gold prices are closely linked to U.S. real interest rates, they may have been suffering from expectations for stronger growth. Goldman Sachs further said that the gold market may have been expecting that real rates would soon be rising along with improving economic growth, leading to a sharp decline in net speculative length in gold futures. Looking forward, Goldman said its U.S. economists forecast subdued growth and further easing by the Fed in 2012, which should push the market’s expectations of real rates back down near zero basis points and gold prices back to its six-month forecast of $1,840 an ounce.

Silver prices have also fallen sharply in mid-day trading. At last check, spot silver was down 1.54% to $32 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 1.42% lower at $31.14, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.79% lower at $53.70, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 3.07% higher at $10.76.

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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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