Gold Prices Edge Higher; Silver Prices Tumble
Gold prices inched higher on Monday, hovering around $1,600 an ounce level as recent dips in gold prices attracted some buying interest. Silver prices, meanwhile, fell sharply on Monday.
However, trading volume was thin as markets in Europe were closed due to Easter Monday Holiday. Besides, a pair of mixed U.S. economic indicators also kept investors in sidelines. Investors are probably waiting for some more economic data releases in this week, especially the Labor Department’s non-farm payroll data for March, to decide next course of action.
At last check, U.S. gold futures for June delivery gained 0.26% to $1,599.80 an ounce while spot gold edged up 0.25% to $1,600.10 an ounce. At last check, the SPDR Gold Trust (ETF) (NYSE: GLD) was up 0.17% to $154.72.
Commenting over lack of buying interest among gold investors, Suki Cooper, precious metals strategist at Barclays Capital, said “We expect prices to remain range-bound finding support from the physical market and central bank buying on the downside in the near term, but gold still misses a catalyst for significant upward momentum,” according to Reuters.
The Labor Department is scheduled to release its monthly non-farm data on Friday. Bullion investors will keep a close eye on it since any weakness or strength in job numbers will provide a good idea on the longevity of the Federal Reserve’s ongoing QE3, which is gold supportive in the long run.
Earlier today, the Institute of Supply Management’s PMI index showed that the pace of economic activities in March lost some its steam, weighing on gold prices. In general, weak economic indicators put pressure on metal’s inflation-hedge appeal. However, the metal found some support after a data release from the Commerce Department showed that construction spending in February rose more-than-expected.
Silver futures plunged 1.25% to $27.97 an ounce.
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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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