Gold and Silver Prices Continue to Slide
Gold prices slipped further on Wednesday as euro eased due to growing investors’ discomfort over continuing political chaos in Greece-which is feared to drag the euro-zone in another bout of debt crisis. Meanwhile, silver prices have also slipped in trading today.
Spot gold edged down more than 1 percent to a four-month low of $1,586.74 an ounce thereby extending its Tuesday’s 2-percent slide from the previous session. It hit $1,588.64 an ounce level by 0413 GMT.
U.S. Gold also hit to a four-month trough, at $1,589.50.
A Leftwing party was supposed to head a coalition government in Greece as no party succeeded in gaining absolute majority, while two mainstream parties got trounced in the elections. However, leftwing party’s strong oppose to bailouts and austerity measures shook-off investors’ confidence as it was feared euro-zone will not be able to pull itself out of the crisis.
Heightened concerns over financial health of the euro-zone made investors to seek out safer options like dollars, U.S. treasuries, while gold, euro and other riskier assets were shunned on Tuesday.
Commenting over the panic which has gripped investors for last two days, Nick Trevethan, senior metals strategist at ANZ in Singapore, said to Reuters, “The situation is Europe is difficult, but what’s happening is that anything that’s slightly tainted with risk is being sold, even though the real risk associated with that product is less than one could justify by its price movements.”
Analysts are now expecting the next support level for gold to be $1,580, after gold fell below $1,620 support level -the lower end of the support price range held for about a month.
Physical buying picked up in Asia as bargain hunters seek to take advantage of sharp fall in prices.
“There is a lot of buying on the physical side despite the fact that prices are still sliding, as people are comfortable buying at prices below $1,600,” said one Singapore based dealer to CNBC-Reuters.
Silver continued to slide, hitting below $29 an ounce- the lowest level since last four months.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is down 2.27% to $28.02, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 4.79% to $42.91, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is up 4.75% to $13.01.
More Posts by this author
Stocks Headed for a Mixed Finish
Gold Prices Hit Four Month Low; Silver Prices Down More than 1%
Polycom – PLCM – To Divest Its Enterprise Wireless Voice Solutions Business
U.S. Stocks Edge Higher After Strong Economic Data
Cigna Corporation – CI – To acquire Great American® Supplemental Benefits Group
BreitBurn Energy Partners – BBEP – Pleased to announce two attractive acquisitions
Gilead Sciences – GILD – FDA Advisory Committee Supports Approval of Gilead’s Truvada®
 |
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. |
