Gold Prices Edge Higher Ahead of Bernanke Testimony; Silver Prices also in Green
Gold prices edged higher in early trading today even as investors await a statement from Federal Reserve Chairman Ben Bernanke. The Fed Chairman will testify before Congress later today. Silver prices, meanwhile, have also edged higher in early trading today.
Investors are hoping that Bernanke will hint at further monetary easing from the Federal Reserve during his testimony. Recent economic data, including Monday’s weaker than expected retail sales report for the month of June, suggest that the growth has stalled.
Further monetary easing from the Fed would be a positive for gold. However, gold prices could see a sharp drop if Bernanke does not hint at more easing.
Daniel Brebner, analyst at Deutsche Bank, told Reuters that as the U.S. data continues to deteriorate, the market is starting to anticipate some kind of action, or at last rhetoric, from the Fed to support growth. Brebner said that he thinks Bernanke will not explicitly discuss his options. Brebner added that he is not sure Bernanke is going to give the market what it wants.
Spot gold prices are currently trading 0.4% higher at $1,595.19 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange are currently trading $3.60 higher at $1,595.20 an ounce.
Silver prices have also edged higher in trading today. At last check, spot silver was up 0.18% to $27.34 an ounce.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is currently up 0.34%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently up 0.86%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently inactive.
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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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