Stock Market Watch

Gold and Silver Prices Tumble

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Gold prices have fallen sharply in mid-day trading after the silver prices have also fallen sharply in trading today.

The Fed yesterday announced that it is extending its Operation Twist program to the end of this year. However, investors were hoping for more from the Fed.


Meanwhile, the latest set of economic data showed that U.S. economy continues to weaken. According to a report by the Labor Department, the four-week moving average for initial jobless claims rose to a six-month high. The latest housing market and manufacturing data also showed weakness.

Commenting on gold’s slide, Ole Hansen of Saxo Bank told Reuters that currently we are seeing a bit of follow-through from disappointed investors, but we should be finding support soon. Hansen said that Ben Bernanke left the door open and extended the expected period of low interest, which is good news for gold. Hansen added that overall, the market is not ready to let go of gold, as it still looks like one of the better bets should economic outlook continue to deteriorate.

At last check, spot gold prices were trading 2.48% lower at $1,565.51 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange are currently trading 3.07% lower at $1,566.20 an ounce.

Silver prices have also tumbled in trading today. At last check, spot silver was trading 4.27% lower at $26.90 an ounce.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 4.04% lower at $26.16, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 7.96% lower at $36.78, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 8.17% higher at $70.98.

 

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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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