Stock Market Watch

Gold and Silver Prices Rebound

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Gold and silver prices have rebounded after falling sharply on Wednesday. Gold has recovered from a three-month low.

At last check, spot gold was trading 0.51% higher at $1,627.50 an ounce.


Daniel Briesemann, analyst at Commerzbank, told Reuters that a countermove after the sharp price fall of recent days was to be expected. But Briesemann expects prices to trade lower, possibly below $1,600 an ounce after the current correction has run its course. He said that gold is highly correlated to equities and commodities at the moment and as long as the equity markets and the commodity markets are going down, so is gold.

Meanwhile, analysts at Scotiabank said in a research note that markets in general seem to be in risk-off mode as the Fed keeps quantitative easing on a back burner and the fact this has given the dollar a boost is likely to be headwind for gold and if we get a broad based sell-off then gold prices are likely to suffer as investors have to raise money against margin calls.

Scotiabank also said that as such, we would not be surprised to see a move down in gold, but as concerns about Europe’s debt are resurfacing, this time in Spain, the downside may be limited and safe-haven buying may soon return with vigor.

Silver prices have also rebounded in trading today. At last check, spot silver was trading 1.09% higher at $31.66 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 1.45% higher at $30.77, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.70% higher at $52.19, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 2.76% lower at $10.92.

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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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