Stock Market Watch

Gold and Silver Prices Edge Higher

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Gold prices eked slight gains during Asian trading hours on Friday as growing speculation that the Silver prices also gained in early trading on Friday.

At last check, gold futures for December delivery edged up 0.19% to $1,312.40 an ounce while spot gold added 0.12% to $1,313.00 an ounce.

Silver futures gained 0.78% to $20.35 an ounce.

Bullion clocked a strong comeback on Thursday. Short coverings, a broadly lower U.S. dollar and upbeat trade data from China, all helped the metal to breach the physiological level of $1,300 an ounce. Gold futures almost climbed 2% on Thursday.

The U.S. dollar continued to trade near its seven month low level on Friday but investors remained largely uninterested as they fear that imminent scaling down of the economic stimulating measures will hurt gold’s inflation-hedge appeal. Already, four top Fed officials have given indication that the pullback of the QE3 is very much on the cards.

Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher are in favor of tapering of asset purchases from September itself.

One Singapore based precious metal dealer said to Reuters on Friday that the metal will need to cross $1,331 level if the rally has to sustain.

Meanwhile, holdings of the SPDR Gold Trust (ETF) (NYSE: GLD), the world’s largest gold-backed ETF, fell by 1.2 tons on Thursday, showed a data provided by Reuters.

A report released by Blackrock on Thursday showed that the total value of outflows from gold ETFs stood at $30.9 billion by July.

 








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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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