Gold Prices Slightly Up, Silver Prices Tumble
Gold prices inched higher during Asian trading hours on Monday but struggled to keep above $1,600 an ounce as demand for safe haven bets remained capped following the bailout of Cyprus in the preceding week. Silver prices, meanwhile, tumbled in early trading on Monday.
At last check, gold futures for June delivery 0.21% to $1,599.0 while spot gold 0.11% to $1597.86 an ounce. Earlier today spot gold hit an intra-day high of $1,600.81 an ounce as investors sought to take advantage of recent dips in gold metal prices. Spot gold slumped 4 percent in the first quarter of 2013
Stronger euro also supported prices. The currency was last up 0.14% against the U.S. dollar while the dollar index also edged lower.
However, China’s PMI Index for March, which climbed to its highest in 11 months, weighed on the yellow metal. In general, when economic indicators show signs of rebound, market participants seek higher returns in riskier assets such as equities.
Meanwhile, bullion investors are also keeping in an eye on escalating tensions between North and South Korea. Tensions in Korean peninsula re-erupted after South Korean President said there would be strong and rapid military response to any provocation from North Korea.
Metal strategists like Brian Lan, who is managing director of GoldSilver Central believes that investors are remaining in sidelines in this uncertain environment, adding that if crisis in Korean peninsula intensifies than gold could “test $1,620” level.
Gold prices gained 1% in March after concerns over financial system meltdown in Cyprus triggered the demand for safe-haven bets climbing as high as $1,616.56 an ounce; however prices quickly fell after international lenders and the Cypriot government reached a last-minute deal.
Commodity Futures Trading Commission data showed that hedge funds and money managers lowered their net long positions on gold and silver for the week ended March 26, according to Reuters.
Silver futures tumbled 0.98% to $28.045 an ounce.
In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was down 0.62%, and the ProShares Ultra Silver (ETF) (NYSE: AGQ) was down 1.43%.
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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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