Stock Market Watch

Gold Futures Edge Higher; Silver Prices Slip

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Gold futures gained on Monday, recovering some lost ground from the previous session as investors expect global central banks to reiterate their commitment towards accommodating monetary policy. However, spot gold price eased on Monday. Spot silver prices also edged lower.

Gold futures were last trading $7.50 higher at $1,329 an ounce while spot gold was last trading 0.29% lower at $1,329.44 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was down 0.23% to $128.50.

Spot silver was last down 0.30% to $19.89 an ounce.

The Federal Reserve’s two-day open market committee meeting (FOMC) will kick-start from Tuesday and market participants expect that bank’s chairman; Ben Bernanke will offer dovish forward looking guidance.

The Bank of England (BOE) and the European Central Bank (ECB) are also likely to continue with low interest rates as both banks try to shore up the two economies.

An environment of accommodating monetary policy tends to support gold prices as it stokes inflationary concerns.

Bullion, according to Jason Rotman, president of Lido Isle Advisors in Newport Beach, California, has found a strong support at $1,315 an ounce level; however he believes that any further gains are likely to remain capped as eventually the Fed could start tapering its quantitative easing.

Rotman thinks that $1,393 an ounce level mark could be the “ceiling for gold”.

Furthermore, the U.S. economic indicators have been also showing marked improvement, especially the job data which could support the case for early winding down of the quantitative easing and put lid on gold’s gains.

In a note to investors, Barclays wrote, “Prices are unlikely to maintain their upward momentum in the seasonally weak period for demand unless U.S. macro data deteriorate, driving further short covering-led support.”

 

 








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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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