Gold, Silver Prices Take a Breather NEW YORK (TheStreet ) -- Gold and silver prices were losing steam Tuesday as investors opted for stocks. Gold for April delivery was shedding $9.10 to $1,425.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,437.20 and as low as $1,423.60. The spot gold price was down $4.40, according to Kitco's gold index. "I think the new band of trading is going to be between $1,400 and $1,500," says Mihir Dange of Arbitrage, "and if it gets above $1,450 then it should stabilize between $1,450 and $1,500." Despite potential profit taking or rotation into other assets like gold is
seeing Tuesday, Dange is undeterred saying that gold has seen a systematic rally
as investors are "spreading gold against every other commodity," using gold as a
hedging tool. The SPDR Gold Shares(GLD_) added almost 7 tons on Monday as
investors and traders used the gold ETF.
"In the short run, I think we are going to see $37." Although Streible isn't ruling out a pullback, he sees $34 as a key level of support. Vote: How high will silver prices go in 2011?
One potential pitfall for precious metals could come it the situation in
Libya changes and leader Gadhafi resigns, a rumor which has been gaining
traction. Rebel forces refused to meet with Gadhafi to negotiate and the
fighting, for now, is continuing. Other gold stocks, Randgold Resources(GOLD) and AngloGold Ashanti closed lower at $77.01 and $47.62, respectively. Shares of Randgold will be one to watch Tuesday as worries spread that political instability in the Ivory Coast will disrupt production at its Tongon mine. Reportedly Cluff Gold halted its operations in the region Monday. http://www.thestreet.com/story/11035252/2/gold-prices-pause-as-silver-keeps-rising.html |
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