Gold Prices Settle Higher; Silver Prices Slip
Gold prices edged higher on Thursday after series of disappointing U.S. economic data and earnings releases burnished metal’s safe-haven appeal, slightly; while strong physical-side demand from Asia also boosted the metal prices. Silver prices, meanwhile, edged lower on Thursday.
U.S. gold futures for June delivery edged up 0.7% or $9.80 to settle at $1,392.50 an ounce while spot gold was last up 0.96% to 1,389.70 an ounce.
The sharp drop in cash gold prices on Monday boosted the demand for gold bars, coins in Asia. So strong was the demand that U.S. gold coins went off the shelf. Premiums for gold bars in Hong Kong were between $1.90 and $2.00 an ounce to the spot prices in London, which was the highest since early last year while premiums in Singapore and Tokyo also stood at multi-months highs, according to Reuters.
However, overall sentiment in gold still remains fragile, which is reflected by continuous exodus of investors from gold-backed exchange- traded- funds. A data provided by Reuters showed that holdings of the SPDR Gold Trust (ETF) (NYSE: GLD), the world’s largest gold-backed ETF, plunged to a three year low level this week.
On the U.S. economic data front, the leading economic indicators, a measure on future economic activity, slipped in March, a first drop since last seven months, according to the Conference Board. Separately, a data provided by the Philadelphia Fed showed that business activity in the mid-Atlantic region increased at a slower-than-expected rate.
The Labor Department’s weekly jobless claims were also slightly higher-than-expected. Weakness in economic indicators boosted the demand for safe-haven bets. Besides, some disappointing quarterly results from blue chip companies also diverted investors away from riskier assets.
Silver futures fell 0.61% to $23.165 an ounce.
In late trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.04%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 0.04%.
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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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