Stock Market Watch

Gold and Silver Prices Remain in Red

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Gold prices along with other riskier assets continued to edge lower on Monday as market sentiment following election results in France and Greece turned precautious. Silver prices are also lower in trading currently.

Market participants are now concerned about how would France’s President designate, Francois Hollande, a socialist would comply with an agreement over euro-zone austerity drive. Hollande believes that adopting severe austerity measures cost the euro-zone badly as it curtailed growth and increased unemployment.


Meanwhile, in Greece, the drubbing of two political mainstream parties along with no political party getting an absolute majority reflects the growing discontent among the people with regard to current economic policies in the troubled region infested with debts and rising unemployment.

There is growing fear that anti-austerity feeling, could threaten monetary union’s ability to resolve its debt crisis.

On Monday, European stocks plunged to 4-1/2 month lows, Brent crude oil fell to its lowest since January, and safe-haven German Bund futures hit record highs.

Uncertainty over the euro-zone weighed on euro. The euro tumbled to its three month low against the greenback.

At last spot gold edged lower 0.31 percent at $1,636.91 an ounce having earlier dropped as low as $1,634.16.

Commenting over gold’s retreat on Monday after a sharp rebound on Friday, Alexander Zumpfe, a trader at precious metals house Heraeus, said to Reuters, “”Gold opens the week lower with investors in risk-off mode after this weekend’s election. Stocks are weaker, the euro is losing ground, and since gold is currently considered as a riskier asset, it is also losing ground.”

However, he also added that some buying orders on Monday helped the metal to arrest some loses. “We already saw some physical buyers coming back this morning,” he said to Reuters.

Although the physical gold buying stays sluggish in Asia, gold’s import could pick up in India- world’s biggest importer of gold –in coming days as the Indian Government scrapped the excise duty on Jewelry, imposed in March, according Prithviraj Kothari, President of Bombay Bullion Association and Reuters.

In some other precious metal markets, Spot silver lost 0.56 percent at $30.17 an ounce. Spot platinum climbed up 0.32 percent at $1,525.25 an ounce and spot gained 0.7 percent at $650.72 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently down 0.44% to $29.27, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 0.91% to $46.98, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is up 0.93% to $11.90.

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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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