Gold and silver prices are showing gains today after the euro rose sharply against the dollar. The euro is up on reports that the International Monetary Fund (IMF) is planning to expand its lending resources.
However, the gains have been modest as investors are watching for developments in Greece where officials are meeting with private investors to decide on the haircut they need to take on their Greek debt holdings.
Silver prices are up in trading today. At last check, spot silver was trading 0.8% higher at $30.30 per ounce.
The iShares Silver Trust ETF (SLV) is currently trading 0.34% higher at $29.30, the ProShares Ultra Silver ETF (AGQ) is currently trading 0.70% higher at $49, and the ProShares UltraShort Silver ETF (ZSL) is currently trading 0.60% lower at $13.19.
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.
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.
Source: Gold and Silver Prices Rise on IMF Talk (Beacon Equity)
