Gold prices are flat in trading today as investors remain on the sidelines ahead of presentation of Federal Reserve Chairman Ben Bernanke later this week. Investors will be looking for hints on whether the Fed Chairman plans to implement further monetary easing during the presentation. Silver prices, meanwhile, have fallen sharply today.
Further monetary easing from the Federal Reserve would weaken the U.S. dollar, which is a positive for gold.? The correlation between the dollar and the precious metal is currently at -0.68, which is the strongest inverse correlation in nearly three months.
Gold investors will be keenly watching Bernanke. The Fed Chairman will present his semi-annual monetary policy report on Tuesday and Wednesday.
In a research note, Barclays Capital analysts today said that gold has been pulled and pushed back on expectations of further quantitative easing and remains under pressure from the strong U.S. dollar. Barclays Capital analysts further said that over the coming weeks, the resilience of ETP (exchange-traded products) holdings, coupled with the physical market ahead of the seasonally strong period for demand in India, will be key in determining the solidity of the price flow for gold.
At last check, spot gold was trading flat at $1,589.75 an ounce. Gold futures for delivery in August on the Comex division of the New York Mercantile Exchange were down 0.1% to $1,589.70 an ounce, at last check.
Silver futures are also lower today. At last check, silver futures were trading 1.13% lower at $27.06 an ounce.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is down 0.53%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 1.26%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) is up 0.98%.
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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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