Stock Market Watch

Gold and Silver Prices in Green

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Gold prices continued to rally on Tuesday, touching to its two week high as investors’ concerns over the resilience of the U.S. economy weighed on the dollar. Silver prices are also higher in trading today.

At last check, Spot gold was gaining 0.27 percent at $1,668.50 an ounce, having fallen earlier to a session low of $1,658.83 even as U.S. gold edged up 0.37 percent to trade at $1,670.40.


The dollar fell against most currencies as recent strings of U.S. economic indicators revived some hope that Federal Reserve may provide some kind of monetary easing measures, aimed at stimulating the U.S. economy.

As dollar weakened, the bullion market gained for sixth successive day, the longest rally since last August. However, many analysts believe that it is too early predict a rally in the bullion market.

Speaking to Reuters, Nikos Kavalis, an analyst at RBS, said, “What I would definitely say is, near term, I can’t see the price breaking higher, to $1,700 an ounce or above. It needs another catalyst, something more powerful than perhaps in the near future there could potentially be QE.”

Kavalis also feels that any further QE3 may not be arriving any time soon despite fed’s hint on possible quantitative easing. “Of course, an excessively loose monetary policy environment will continue but whether there is a need for another QE, I am not convinced; we are in an environment where market-specific fundamentals are taking a bit of a backseat and general sentiment is really the driving force, he said to CNBC-Reuters.

Meanwhile ETPs witnessed their largest one-day net inflow in a month, underpinning investors’ demand for the metal, which has swung back into positive territory after lying in trough for almost three months.

Holdings of metal in the world’s largest ETPs observed by Reuters soared by 129,120 ounce, or 0.18 percent, by the end of trading day on Monday to a total of 70.259 million ounces.

Meanwhile, silver prices have also edged higher in trading today. At last check, spot silver was trading 0.45% higher at $31.14 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.46% higher at $30.25, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 0.68% higher at $50.27, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 0.98% lower at $11.15.

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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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