Stock Market Watch

Gold Prices Rally as Dollar Eases; Silver Prices also Rise Sharply

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Gold prices jumped more than 1.50% during Asian trading hours on Monday as technical buying ensued after the metal breached $1,300 an ounce level mark, supported by weakness in the U.S. dollar. Silver prices, meanwhile, also rallied in early trading on Monday.

At last check, gold futures for August delivery climbed 1.75% to $1,316.70 an ounce while spot gold jumped 1.64% to $1,317.00 an ounce.

The U.S. dollar traded broadly lower on Monday after the Wall Street Journal reported that the world’s largest economy probably expanded at slower-than-expected rate in the second quarter of this year.

A survey conducted by the WSJ showed that forecasters expect the U.S. economy to show a modest 1.5% annualized growth for the second quarter down from earlier projection of 1.9% growth. Recently, series of disappointing quarterly results have also underpinned the fact that the U.S. economy has lost its momentum in the second half of 2013.

Weakness in the U.S. economy outlook is likely to prompt the Federal Reserve to prolong its economic stimulating measures. Although Bernanke, in his latest congressional testimony, hinted at possible winding down of $85 billion worth monthly bond purchase program later this year, he also pointed that the bank has left all options opened.

Earlier today, technical buying was triggered after the metal, having failed to cross $1,300 an ounce in last one and half week, finally managed to break this resistance.

Meanwhile, in Asia, the demand for physical gold was subdued on Monday. However, dealers in Hong Kong said that gold coins and bars are in tight supply.

Silver futures were last up 2.52% to $19.95 an ounce.

In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 2.01%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 4.34%.








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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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