Stock Market Watch

Gold Prices Settle Above $1,330 Level Mark; Silver Prices Surge

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Gold prices climbed more than 3% on Monday to settle at one-month high level  as broadly weaker U.S. dollar supported the demand for dollar-priced commodities even as  tepid housing market data raised hopes that the Silver prices also surged in trading on Monday.

U.S. gold futures for August delivery jumped $40.20, or 3.1%, to settle at $1,333.10 while spot gold was last up 2.95% to $1,333.96 an ounce. In late trading, the SPDR Gold Trust (ETF) (NYSE: GLD) was up 2.99% to $128.85.

Silver futures also rallied and were last up 5.06% to $20.44 an ounce.

The U.S. dollar traded sharply lower against most major traded currencies on Monday. The euro gained after the Portuguese Prime Minister said that his government would carry on with the austerity drive so that the country remains on track to achieve its budget target laid out by international lenders. The yen was also supported after Shinzo Abe led coalition government secured a landslide victory in the upper house of parliamentary elections, prompting investors to cut long positions on the greenback.

The U.S. dollar was also weighed by unexpectedly weak economic data release. Existing home sales fell 1.2% in June while economists’ consensus forecast was for 1.9% gains. The data has once again raised a question mark over whether the Fed will be inclined to reduce the pace of economic stimulating measures at this juncture. Separately the Wall Street Journal, in its weekend report, said that the U.S. economy in the second quarter cooled off. The report said that the economists now expect the U.S. economy to show only 1.5% growth in the second quarter, YOY compared to earlier estimations of 1.9% growth.

The U.S. dollar index, a gauge on U.S. unit’s performance against a basket of six major currencies, fell 0.5% on Monday.

 








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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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