Gold, Silver Prices june 9 2011, Gold rises as grain

Gold, Silver Prices june 9 2011, Gold rises as grain , Gold futures were steady Thursday, while silver and other precious metals climbed sharply as the European Central Bank kept its benchmark interest rate unchanged. The most actively traded contract, for August delivery, recently traded 60 cents higher at $1,539.30 a troy ounce on the Comex division of the New York Mercantile Exchange.


The European Central Bank Thursday left its benchmark interest rate unchanged at 1.25% for a second straight month, meeting market expectations. ECB President Jean-Claude Trichet in prepared remarks said "strong vigilance" was warranted to keep euro-zone consumer prices steady, comments widely viewed by market participants as signalling a rate hike later this summer.

Such aggressive measures by the bank to clamp down on inflation would likely lift the euro against the dollar, enhancing the appeal of precious metals, said Walter de Wet, an analyst with Standard Bank. A weaker greenback can boost the appeal of dollar-denominated commodities by making them cheaper for market participants using other currencies.

But the ECB's decision Thursday wasn't enough to give gold firm direction after days of largely indecisive trading. Gold futures have been bound in a narrow range on either side of the $1,540 an ounce mark during the last week, supported by investor demand for safe-haven assets because of worries about the ability of Europe's currency union to manage member countries' sovereign debt.

Silver, meanwhile, continued its recent back-and-forth trade below $40 a troy ounce, rising sharply in New York. Silver for July delivery, the most actively traded contract, was recently up 54 cents, or 1.5%, at $37.160 a troy ounce.

The metal stands to benefit this year from economic growth, as it has a wide range of industrial uses, analysts with Commerzbank said Thursday in a research note. The analysts cited a report Wednesday from the World Silver Institute stressing the growing importance of the metal to industry.

Silver is "the cheaper alternative to gold," said George Gero, vice president with RBC Capital Markets Global Futures, adding that the metal was also likely benefiting from speculative buying because of low stockpiles of the metal held in exchange-certified warehouses.

Other precious metals with more industrial applications than gold were also higher Thursday.

Nymex palladium for September delivery, the most actively traded contract, rallied $11.45, or 1.4%, at $817.15 a troy ounce. Platinum for July delivery, the most actively traded contract, was up $13.60, or 0.7%, at $1,844.80 a troy ounce. For the latest updates PRESS CTR + D or visit Stock Market news Today

Related Post: