Gold and silver prices outlook january 19 2012

Gold and silver prices outlook january 19 2012 : Gold and silver prices are gaining in trading today after the euro rose sharply against the dollar on reports that the International Monetary Fund (IMF) is planning to expand its lending resources. However, the gains have been limited as investors watch developments in Greece, where officials are meeting with private investors to decide on the haircut they need to take on their Greek debt holdings.

At last check, spot gold was trading 0.30% higher at $1,655.84 an ounce. Gold futures for delivery in February are up $1.10 to $1,656.70 an ounce.

Gold prices rose as the euro pared its early losses and climbed 0.7% against the U.S. dollar. The euro rose after Bloomberg reported that IMF is looking to boost its lending resources by $1 trillion.

However, traders are watching developments in Greece and this has kept the gains limited. Anne-Laure Tremblay, analyst at BNP Paribas, told Reuters that while in the short term, gold may have further upside, failure of Greece and its private creditors to reach an agreement in the coming days could derail the upward trend.

Gold has already risen nearly 6% this year, breaking ranks with the euro.

In a research note, HSBC today said that corrective EUR-USD could continue as there are large short positions in the euro and further gains may result in a sharp short covering euro rally. HSBC noted that this would likely support gold, however, beyond a near-term rally, slow progress on the euro zone debt crisis may keep the market negative on the euro and limit euro gains.

Silver prices are also higher in trading today. At last check, spot silver was trading 0.8% higher at $30.30 an ounce. 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

Related Post: