Gold and Silver Climb Higher on Dollar Weakness
By Eric McWhinnie | March 20, 2012 6:08 AM EST
Both precious gained as the U.S. dollar (NYSE:UUP) declined against the euro for the third consecutive trading session. Marc Chandler, global head of currency strategy at Brown Brothers explained, “The fact that the euro held support near $1.30 is important. That is the bottom of the $1.30 to $1.35 trading range that has confined the euro through most of the first quarter. There is scope for the euro test the $1.325-$1.330 area in the days ahead.”
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The U.S. dollar index continues to have trouble maintaining a price above 80. Last week, the index closed at 79.78, as consumer sentiment for March and industrial production data for February disappointed investors before the weekend.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged .15 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) jumped 1.6 percent. Gold miners (NYSEARCA:GDX) as Goldcorp Inc. (NYSE:GG) traded .40 percent higher, while Newmont Mining (NYSE:NEM) traded flat. Silver miner (NYSEARCA:SIL) Hecla Mining (NYSE:HL) surged more than 3 percent. Silver Wheaton Corp. (NYSE:SLW) and Endeavour Silver (NYSE:EXK) both gained about .40 percent.
According to a Bloomberg survey on Friday, 13 out of 26 analysts expect gold prices to increase this week and four held a neutral stance, the lowest proportion in about two months. This comes a week after Commodity Futures Trading Commission data showed a 20 percent decrease in net long futures positions held by speculators.
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