Gold Prices Hit One-Month High; Silver Prices also Rise Sharply
Gold prices edged up on Thursday, hitting its four-week high as simmering concerns over debt crisis in Cyprus along with unexpectedly weak economic indicators from the euro zone, boosted the demand for safe haven assets while the Silver prices also edged higher on Thursday.
Besides, the metal breaching $1,613 an ounce level, which was its mid-February trend-line resistance on technical charts, also triggered technical buying.
At last check, U.S. gold futures for April delivery gained 0.40% to $1,614 an ounce while spot gold climbed 0.61% to $1,615.61 an ounce. Silver futures climbed 1.31% to $29.195 an ounce.
According to Reuters, traders believe that the metal will have to break above $1,620 an ounce level before it can add more gains.
“A break above $1,620 would probably give us a $20-$25 move but now with uncertainty around what is going to happen in Cyprus the market may struggle to push through that level,” said Ole Hansen, a senior manager at Saxo bank, according to Reuters.
Earlier today, the European Central bank (ECB) warned Cyprus to reach a deal with the euro zone finance ministers within next four days, adding that failure to do so will result in cut out on financial aid, weighing on the market sentiment and prompting investors to increase exposure to safe haven bets.
Moreover, weakness in equity markets following weaker-than-expected economic data from the euro zone also boosted the demand for gold.
A European data release showed that composite PMI in both Germany and France dropped for the month of March, while business activities in the euro zone also shrank more-than-expected in the same period, casting doubt over the region’s economic recovery.
Holdings of SPDR Gold Trust (ETF) (NYSE: GLD), world’s largest gold-backed ETF, remained unchanged from previous session at 1,222.162 tons on Tuesday.
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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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