Stock Market Watch

Gold and Silver Prices Edge Lower

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Gold prices retreated somewhat on Monday as U.S data showed that personal income grew in April even as dollar strengthened against the euro -which is under choppy waters just ahead of ECB meeting with elections due in France and Greece this week, while Spain totters under recession. Meanwhile, silver prices are down sharply in mid-day trading.

At last check, U.S. spot gold was losing 0.52 percent, trading at $1,651.70 an ounce, while U.S. futures for June delivery also edged lower $11.30 an ounce to $1,653.60.


Earlier on Friday, weaker than expected GDP growth in the first quarter boosted the yellow metal’s price as gold investor’s anticipated that fed will provide some quantitative easing to pump-up the economy; however, with household income rising in April, QE3 in a near-future remains an indistinct reality.

Nevertheless, for some experts like Bayram Dincer, analyst LGT Capital Management, some degree of monetary easing can be expected.

Commenting over the QE3, Bayram Dincer said to Reuters, “Analysts have really decreased (their expectations for QE), but I feel if the conditions are right, we can still see some sort of quantitative easing.”

Meanwhile, gold investors are keeping their eye on French debt sale later on Monday, along with an ECB press conference and rates decision on Thursday, in order to get a clear outlook of the euro zone economy.

Rising ETF Holdings

Concerns over sluggish demand for physical gold, especially from world’s biggest importer India have dented the investors’ confidence in the metal.

According to one market watcher “the speculative fervor” has gone out of gold. As the metal’s price failed to break out of a narrow range by last Tuesday, money managers in gold futures and options cut net long positions in the week ended April 24—a third decline in holdings in last four weeks.

In some other precious metals markets, silver was dropping 1.47 percent at $30.77 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 1.02% lower at $30.06, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.25% lower at $49.60, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 1.81% higher at $11.28.

Spot platinum was sliding 0.1 percent to $1,564.74 an ounce, while spot palladium was also losing 0.41 percent to $675.22 an ounce.

So far this month, Platinum is heading towards  4.6 percent fall, while palladium is on track to rise 4.9 percent while gold is declining marginally.

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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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