Stock Market Watch

Gold and Silver Prices Lower in Early Trading

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Gold and silver prices have slipped in trading today as the euro fell against the U.S. dollar. Traders are also cautious as they await the outcome of talks between Greece and its creditors.

At last check, spot gold was trading 0.24% lower at $1,652.80 an ounce. Gold futures for delivery in February are currently down $8 to $1,650.30 an ounce.


Gold has made a strong start this year as low interest rates, strong physical demand from Asian markets, and worries about the sovereign debt crisis lifted prices after a sharp decline in December. However, analysts expect the precious metal to face headwinds this year.

David Jollie, analyst at Mitsui & Co. Precious Metals, told Reuters that there are a lot of reasons still to buy gold but its fair to say that with risk fatigue setting in, a little bit of price sensitivity coming through and the dollar likely to show some strength, the gains for gold in the current environment are probably less exciting than they were.

Gold slipped in trading today as the euro retreated on profit taking. However, the single currency could find some support if the talks between Greek officials and creditors, which are into their third day, are successful.

In a research note, Commerzbank today said that negotiations over the involvement of private creditors in the Greek haircut are proving to be extremely difficult. Commerzbank also said that there remains a high risk of an outright insolvency of Greece in the coming months which could bring the sovereign debt crisis back to boiling point.

Silver prices are also lower in early trading today. At last check, spot silver was trading 0.5% lower at $30.41 an ounce.

In early trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is down 0.10% to $29.71, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 0.20% to $50.42, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is up 0.24% to $12.79.

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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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