Stock Market Watch

Gold and Silver Prices Remain in Green in Mid-Day Trading

by ·


Gold and silver prices have remained in green in mid-day trading. Gold is headed for its best weekly performance since late October.

At last check, spot gold was trading 0.7% higher at $1,732.16 an ounce. Spot gold prices have risen 10% in January, following a sharp decline in December. For the week, spot gold prices have risen more than 4%, which is best weekly performance since the week ending October 30.


Anne-Laure Tremblay, analyst at BNP Paribas, told Reuters that the Federal Reserve’s announcement that it would keep rates exceptionally low until 2014 was clearly not fully priced by the market. Tremblay said that real interest rates are likely to stay negative in the U.S. in the next two years, which will be supportive of the gold price.

UBS said in a research note today that the market attitude towards gold for most of January could be summed up in two words; cautious optimism. UBS said that investors were reluctant to add to positions aggressively as memories of the disappointment in fourth quarter lingered. UBS said that a fresh catalyst was needed and the FOMC outcome on Wednesday fit the bill as more accommodative monetary policy is a very good foundation for gold to build on the next move higher.

Silver prices are also gaining in trading today. At last check, spot silver was trading 1.02% higher at $33.76 an ounce.

The iShares Silver Trust (NYSE: SLV) is currently trading 1.17% higher at $32.81, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.40% higher at $61.03.

The ProShares UltraShort Silver (ETF) (NYSE: ZSL), which takes a short position on silver, is currently trading 2.10% lower at $10.24.

More Posts by this author

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.


Tags:

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.

You may also like...