Stock Market Watch

Gold Prices Touch $1585 an Ounce Level; Silver Prices Extend Losses

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Gold prices continued to slide on Wednesday, touching its four month low and on a verge to pare all its gains in 2012 as political gridlock in Greece amid strong dissent over austerity measures shook off investors’ confidence, while structural weakness in Spanish banking system hit the euro, knocking it down to its 15 week low against the greenback, weighing on the metal. Meanwhile, silver prices have also extended their losses.

With gold losing its sheen and euro tumbling, nervous investors are seeking safer assets like dollar, German Bunds, U.S. treasuries.


At last check, U.S. spot gold was losing 1.2 percent on the day at $1,585.81 an ounce, having shed more than 3 percent so far this week in its largest weekly plunge since mid-March.

Gold’s gains have already shrunk to 1.4% year-to date from its peak in February when metal’s prices soared 14%.

Commenting over gold’s price range over short term, David Govett, head of precious metals at Marex-Spectron, said to Reuters-CNBC, “Gold seems to be pegged to the euro and this is not going to rally in a hurry either. So all in all, I expect the market to trend lower and would look for a trading range for the next month of $1,525-$1,650.”

“Long term, events will catch up with other markets and the dollar will lose its temporary safe haven status, and at that point gold will start to shine again. But for now, it is in the doldrums and looks set to stay there for a while to come,” added Govett.

In some other precious metal markets, Palladium edged lower 0.9 percent on the day at $609.22 an ounce. Platinum also lost 1.0 percent at $1,488.24 an ounce

Meanwhile, silver hit its lowest level since the start of the year. Spot silver slid 1.8 percent on the day at $28.89 an ounce and was heading towards for a weekly decline of 4.3 percent- the biggest one month fall.

The iShares Silver Trust (ETF) (NYSE: SLV) is currently trading 1.26% lower at $28.31, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is currently trading 2.42% lower at $43.98, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is currently trading 2.01% higher at $12.67.

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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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