Gold and silver prices eased slightly Monday as the dollar and
stock markets went flat in quiet trade in light of the Veteran's
Day holiday and lack of major economic news. A successful passage
of the Greek budget on Sunday had no effect on the euro.
Spot gold prices gave back 0.16% to $1,729.10 an
ounce.PowerShares DB U.S. Dollar Index Bullish (
), tracking the dollar against a basket of global currencies, was
nearly flat and trades at a two-month high.
"The negative reaction to the better-than-expected nonfarm
payrolls (released Nov. 2) heightened uncertainty among investors
over the ability of QE3 (quantitative easing) to support prices
and/or the longevity of the Fed's open-ended commitment to
easing," Marc Ground, a commodities analyst at Standard Bank in
New Zealand, wrote in his weekly report. "However, countering
this was last Tuesday's positive reaction to early indications
that President Obama would win re-election. Participants were
emboldened by the belief that an Obama win would ensure that the
Fed will continue with its accommodative stance."
ETF holdings in gold increased 5.2 tons last week to a
12-month high of 2,681.9 tons.
SPDR Gold Shares (
), tracking a 10th of an ounce of bullion, shed 0.22% to 167.45.
It's consolidating below the 50-day moving average. It's
corrected only 3% from its 52-week high, which is considered a
normal pullback in an uptrend.
Market Vectors Gold Miners ETF (
) dropped 1.24% to 50.04. It appears to have hit price resistance
at its 50-day line after breaking below it at the beginning of
Market Vectors Junior Gold Miners (
) fell 0.67% to 23.78. It's consolidating along its 50-day
average, which means its uptrend remains intact.
Silver Prices Dull
Spot silver prices fell 0.67% to 32.51 an ounce.
IShares Silver Trust (
) fell 0.54% to 31.37. It's consolidating below its 50-day
average and appears to be forming a new base.
Global X Silver Miners ETF (SIL) shed 0.70% to 23.95. It's
been trading in a tight sideways range for the past seven weeks
and its chart remains bullish.
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