Stock Market Watch

Gold Prices Edge Lower; Silver Prices Tumble

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Gold prices were heading towards logging fourth straight session loss on Tuesday as broadly firmer U.S. dollar and rally in global equities, which was fueled by globally renowned hedge fund manager’s remarks, dented demand for the precious metal. Silver prices also plunged on Tuesday.

Moreover, constant liquidations from the gold-backed ETFs, including the SPDR Gold Trust (ETF) (NYSE: GLD) is also keeping investors and money managers reluctant to take any fresh bullish positions on bullion.

At last check, gold futures for June delivery while spot gold fell 0.56% to $1426.40 an ounce while spot gold edged down 0.24% to $1,426.68 an ounce.

While spate of unexpectedly strong U.S. economic indicators released in the recent past, including April’s retail sales, boosted the U.S. dollar against all major traded currencies, a weaker-than -expected ZEW Index, which is a gauge on German economic sentiment, dented the euro on Tuesday.

The ICE dollar Index edged up on Tuesday and was not far away from its five week high, hit on Friday.

In a research note to clients, Karim Cherif, an analyst at Credit Suisse said, “Currency movements are clearly driving the market at the moment and then if you look at bond yields they are also moving higher, indicating that investors prefer to put their money in other assets.”

Meanwhile, noted hedge fund manager, David Tepper’s remarks that he was definitely bullish on stocks even at this juncture, further boosted investors’ risk appetite on Tuesday. Tepper was speaking to the CNBC.

A data provided by Reuters showed that holdings of the SPDR Gold Trust, which is the world’s largest gold-backed ETF, remained unchanged at 38.811 million ounces on Monday.

Silver futures were last down 1.44% to $23.36 an ounce.

In late trading on Tuesday, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.96%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 1.90%.

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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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