Gold Prices in Green; Silver Prices Sharply Lower

Gold prices swung back to positive territory, touching session’s high at $1,640 an ounce as weaker than expected data on U.S. non-farms jobs for April weighed on dollar, boosting gold’s price even as expectations of possible quantitative measures from Fed extended metal’s gains. Meanwhile, silver prices are sharply lower in trading currently.

At last check, U.S gold futures were gaining 0.54%, at $1643.70 an ounce. U.S Spot gold was flat at $1,635.40 an ounce.

Meanwhile euro edged lower 0.2% against the dollar as weak data on euro-zone’s service sector and Sunday’s elections in France and Greece- results of which can put a doubt over monetary union’s commitment over austerity dive, unnerved the market sentiment.

If Sunday’s elections results see Francois Hollande win against incumbent Nicolas Sarkozy, then the euro-zone could head towards a possible confrontation on austerity dive. Hollande has promised to shift the debate in Europe towards promoting growth if he is elected. Meanwhile, in Greece, people hold widespread resentment against traditional political parties as they are furious over economic hardships. Should mainstream parties lose elections in Greece, then the country might plunge into new political chaos.

Shares in Europe were trading lower ahead of a potential turbulent weekend.

In a note to investors, UBS bank wrote, “An acceleration of the focus on Europe could potentially be very disruptive for markets and derail investor sentiment yet again.”

The note also added, “With gold still undecided as to whether it would rather sympathize with risk or safe haven assets, the reaction function of XAU/USD remains unclear at this point.  But given the pressure renewed European tensions would have on the single currency, (gold in euro terms) might be poised to benefit.”

Moving onto some other precious metal markets, silver plunged to its 3 ½ month low at $29.75. The metal is on course to lose 4.5% this week.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 0.03% higher at $29.30, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 0.26% higher at $47.16, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 0.25% lower at $11.87.

Spot platinum edged lower 0.1 percent at $1,526.49 an ounce, while spot palladium was up 0.1 percent at $656.72 an ounce.

More Posts by this author

• 
  Stocks Headed for a Sharply Lower Finish
• 
  Stocks Extends losses as Euro-zone Concerns Shake Market Sentiment
• 
  Statoil – STO – Production grew by 11%
• 
  Quality Distribution – QLTY – Pleased with the Company’s growth in earnings this quarter
• 
  Guidewire Software – GWRE – Mitsui Direct General Insurance has selected GWRE as its new claims management system
• 
  Calamos Asset Management – CLMS – AUM for the quarter increased 10% to $36.2 billion
• 
  Carmike Cinemas – CKEC – Record first quarter financial results in many key metrics

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.