Calm returns to gold market after big swings

Gold and silver futures held broadly steady Wednesday as traders remained on the sidelines following massive swings for both metals in recent days.

Gold for December delivery  edged up $3.90, or 0.2%, to $1,656.40 an ounce and the December silver contract  rose 26 cents, or 0.8%, to $31.80 an ounce.

The relatively subdued moves followed big losses for both gold and silver last week, including the gold contract’s worst day in five years on Friday, as traders sold precious metals to raise cash. The losses were followed by a rebound Tuesday amid hopes for progress over the European sovereign debt crisis.

Shamin Mansoor, an analyst at Daniel Stewart, said that despite the sharp drop for gold in the last week, redemptions from gold exchange-traded funds have been light. On top of that, lower prices also appear to be bringing back emerging-market buyers, Mansoor said, in a note to clients.

Commerzbank analysts agreed that the price fall is driving increased buying of physical gold.

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Tags: Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, Gold price forecast, gold prices, Silver price, silver prices

Posted by VBN on Sep 28 2011. Filed under Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry