Stock Market Watch

Gold Pares Early Gains as Washington Nears Deal; Silver Prices Gain

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Gold prices pared earlier gains and were on course to clock a slightly higher finish on Monday as lawmakers looked nearing a deal over the both budget and debt-ceiling issue. Silver prices were higher in trading on Monday.

At last check, gold futures for December delivery added 0.63% to $1,276.20 an ounce while spot gold edged up 0.3% to $1,276.46 an ounce.

The SPDR Gold Trust (ETF) (NYSE: GLD) was up 0.58% to $123.31 an ounce.

Gold, which posted about 3.4% weekly loss last Friday amid dwindling holdings from the world’s top gold-backed exchange traded funds and huge sell-offs at COMEX December futures, gained some traction earlier during the day mainly due to short coverings.

Still, the metal failed to breach $1,300 an ounce level as market participants expected lawmakers to break the impasse by reaching an eleventh-hour deal.

The contention was accurate. Towards the end of the session, gold came under pressure while equities bounced back after a shaky start when Senator Harry Reid told the Associated Press that the Senate was “getting closer” to a deal, which would bring an end to the shutdown and allow  the Treasury to raise its borrowing limit. President Obama is also scheduled to hold discussions with bipartisan congressional leaders at the Whitehouse on Monday afternoon.

“There has been some short-covering today … but overall, the market is expecting a U.S. debt ceiling agreement eventually and it is mostly positioning a little bit more on the short side rather than the long,” said Afshin Nabavi, MKS SA head of trading, according to Reuters.

Silver futures gained 0.57% to $21.38 an ounce.

In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.34% to $20.59, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.52%.

 








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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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