Gold Prices Steady on Prospects of Monetary Easing from ECB, Silver Prices Flat
Gold prices held steady at $1,640 an ounce level on Wednesday following yesterday’s reports that stated that the European Central Bank (ECB) was gearing up to cap borrowing costs of Spain and Italy, lifting gold’s inflation hedge appeal. The metal not only took biggest one day leap but also touched its 3-1/2 month high in the previous session.
At last check, spot gold was nearly flat at $1,638.49 an ounce early on Wednesday, a tad lower from its 3-1/2 month high of $1,641.20 hit in the previous session.
U.S. gold futures contract for December delivery inched lower 0.1 percent to $1,641.20.
According to Reuters market analysts, Wang Tao, technical indicator points out that gold prices could rise to $1,647 an ounce level on Wednesday and should it breaks that resistance level then prices could rise as high as $1,664.
In the U.S., bullion investors will keep a close eye on minutes from Federal Reserve’s latest interest rate policy meeting. The minutes are scheduled to be released today and investors will try to seek hints on whether the Fed is considering another round of quantitative easing or QE3.
Meanwhile, investors’ interest is returning in gold backed exchange traded funds. A data provided by Reuters showed that holdings of SPDR Gold Trust (ETF) (NYSE: GLD),world’s biggest gold backed exchange traded fund, reached 1,278.962 tons by Aug. 21- which is the highest level since early July. Since end of the July the holdings have been climbing.
Platinum prices continued to soar on Wednesday—extending gains for fifth successive day as speculators stockpiled it in the wake of labor unrest in Lonmin’s production facility in South Africa.
On Wednesday, spot platinum gained 0.2 percent, to $1,503 an ounce. The metal is on course to rise above its 200 moving day average.
Silver futures were almost flat, $29.435 an ounce.
In pre-market trading, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.70%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was inactive, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was down 0.90%.
More Posts by this author
- Stocks End Sharply Lower
- Gold Prices Climb on Easing Hopes; Silver Prices also Surge
- Stocks Headed for a Lower Finish
- Stocks Sharply Lower in Mid-Day Trading
- U.S. Stocks Edge Lower
- Hormel Foods Corporation – HRL – Had an excellent quarter
- 1-800-FLOWERS.COM – FLWS – Reports Continued Positive Trends in Revenues, EBITDA and EPS
 |
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.
|
