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Tuesday, June 21, 2011

Gold, Silver Prices News june 21 2011

Gold, Silver Prices News june 21 2011 ; old and silver prices edged higher Tuesday as tentative buying continued ahead of the confidence vote for Greece's Prime Minister George Papandreou.

Gold (-GC) for August delivery was adding $4.50 at $1,546.50 an ounce at the Comex division of the New York Mercantile Exchange. Gold futures have traded as high as $1,549 and as low as $1,539.30, while the spot gold price was last adding $5.80, according to Kitco's gold index.

Silver (-SI) prices were adding 38 cents to $36.45 an ounce while the U.S. dollar index was down 0.38% at $74.70 and the euro was slightly higher.

Investors were tentatively buying up gold and silver as haven assets, but were primarily focused on riskier stocks and commodities, acting as if Papandreou's government will win its confidence vote later today. Support for his government is crucial for the prime minister, who needs to win approval for €28 billion in austerity measures by the end of June to secure the country's next chunk of bailout cash. The result would also be a stepping stone for a second large bailout, which European Union officials are still negotiating.

Gold prices have been biding time, yet to break through and hold the $1,550 level but staying firmly over the $1,500 mark. Jeff Clark, Casey Research's senior precious metals editor, says that gold's strength is due to a lack of a correction rather than fundamental support. "I don't think it's indicative of something bad, but a correction has to come," says Clark.

According to Clark, the biggest decline in the last year in gold has been 6.2%, while "the average correction since the bull market began is about 12%" for assets like gold that gained more than 5% in the sustained rally. A 12% correction from gold's record close of $1,557 back on May 2nd would take prices to $1,363 an ounce.

"There is enough reason to buy gold right now that it is not giving it room to correct," says Clarck, citing Europe's debt crisis and the U.S. debate over whether or not to raise the debt ceiling or default come August 2nd. "As long as those things continue to happen," prices will be supported. On the flip side, Clark speculates that the reason prices aren't hitting highs is because they are already pricing in the end of the Federal Reserve's $600 billion bond buying program, commonly called QE2.

While gold prices flat-line, physical buyers have been on the move. According to a press release on PRLog from Albanian Minerals, a mining and trading company, India imported a record $8.96 billion of gold and silver bullion in May 2011, up 500% from April and up 222% compared with a year ago. Inflation in India was 9.06% in May despite several central bank interest-rate hikes.

"Gold has always been seen as a store of value against currency debasement, inflation and hyperinflation in Asia," says Mark O'Byrne, executive director at Goldcore, a bullion dealer. "This is especially the case in India and we appear to be witnessing an acceleration in the recent trend of Indians opting to buy gold and silver bullion in order to protect their savings."

According to O'Byrne, more than 30 banks now have permission to import gold and silver bullion, which has also helped skyrocketing imports.

Gold mining stocks were trading higher Tuesday. Barrick Gold (ABX) was rallying 2.1% to $44.07, while Newmont Mining (NEM) was 2.1% higher at $52.91. Goldcorp (GG) was gaining 1.7% to $48.15, and AngloGold Ashanti (AU) was up 1.8% at $42.87.

Tag ; Barrick Gold prices june 21 2011, Gold mining stocks prices june 21 2011, AngloGold Ashanti (AU) prices, reason to buy gold right now, Newmont Mining (NEM) stock prices, Goldcorp (GG) stock prices, silver prices per ounce. For the latest updates PRESS CTR + D or visit Stock Market news Today

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