Gold Prices Rebound From One-Week Lows; Silver Prices Flat
Gold prices edged higher on Thursday as weakness in the U.S. dollar and bargain hunting provided some support to the precious metal. Gold plunged more than 1% to hit its one week low level in the earlier session after minutes released from the Silver prices were flat in trading on Thursday.
At last check, U.S. gold futures for June delivery gained 0.28% to $1,563.20 an ounce while spot gold added 0.38% to $1,564.0 an ounce. Silver futures were almost flat at $27.66 an ounce.
The U.S. dollar traded broadly lower on Wednesday, which boosted the demand for dollar-dominated commodities, including gold.
However, gold’s gains are expected to be capped as investors’ fading faith in gold backed exchange traded funds, and Cypriot government’s decision to sell bullion reserves worth euro 400 million to fund part of the bailout requirements will weigh on metal’s prices.
A data provided by Reuters showed that holdings of SPDR Gold Trust (ETF) (NYSE: GLD), world’s largest gold-backed ETF, shrank by 1.4% to 38.051 million ounces on Wednesday.
Furthermore, significant improvement in the U.S. economic indicators is also stoking concerns over the longevity of the Fed’s ongoing $85 billion worth monthly bond purchase program. Earlier today, a data provided by the U.S. Labor Department showed that weekly jobless claims fell unexpectedly by 42,000 to a seasonally adjusted 346,000 compared to economists’ expectation 365,000 claims.
In a note to clients UBS wrote, “The focus on U.S. economic data is bound to become more acute in the coming weeks and months as the market searches for clues on whether the current momentum of opinion at the Fed continues or stalls.”
More Posts by this author
- Gold Prices Extend Losses, Silver Plunge More Than 10%
- U.S. Stock Futures Fall as Chinese GDP Data Weighs Down Market Sentiment
- Bankrate Upgraded By Stifel Nicolaus (RATE)
- Apple to Pay $53M in settlement Linked to Faulty iPhones (AAPL)
- Stocks End Lower on Disappointing Economic Data
- Gold Prices Fall Sharply; Silver Prices Also Tumble
- U.S. Stocks Float in Red Territory
 |
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.
|
