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Friday, October 14, 2011

gold, silver prices news today october 14 2011

gold, silver prices news today october 14 2011 : Gold was marginally higher in range-bound trading in Asia but weak equity markets weighed on sentiment after Standard & Poor's downgraded Spain's long-term rating overnight by one notch to AA-, although improving physical demand after gold corrected to $1,600 per troy ounce last month has been providing support at lower levels, traders said Friday.

At 0600 GMT, spot gold was at $1,667.20 a troy ounce, up $1.90 from its previous close.

The market continues to be cautious as any further fall in stocks, particularly if the G-20 meeting over the weekend fails to soothe investor concerns about Europe, could force investors to liquidate their gold holdings to raise cash.

At a meeting in Paris, starting Friday, the Group of 20 finance ministers are expected to discuss euro-zone problems among other things, but no quick solutions are expected from the meeting.

A continued selling in equities could force investors to cash out from profitable positions in gold, a Sydney-based trader said, adding he expects the yellow metal to find support at $1,640/oz before moving higher.

"The volatility (in gold prices) seems to have eased for now, so we are seeing some investment and physical demand," said a Singapore-based trader. He, however, said gold needs to break above the key $1,700/oz resistance level before any meaningful rally can resume.

Commerzbank analysts said investors who want to hold gold as a safe-haven, have already invested, as is evident from the stable holdings of gold in exchange-traded funds for some weeks now.

Other metals were also moving in a narrow range Friday.

At 0600 GMT, spot silver was at $31.83/oz, up 8 cents, while platinum was up around $8 at $1,535.75/oz and palladium up $8.12 at $598.50/oz.

Barclays Capital analyst Suki Cooper said underlying demand of platinum group of metals remained healthy in China with automobile sales rising 5.5% on year in September.

On the supply side, Statistics South Africa has reported that production of platinum group metals fell 3.9% on-year in August, following a 10% decline in July, although overall production so far this year is still 9% above last year's levels. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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