Gold prices edged higher in trading on Monday following Friday’s huge sell-off that saw the precious metal post its biggest one-day drop since mid-June. Silver prices also rebounded on Monday after falling sharply in the previous trading session.
Gold’s gains were limited on Monday as the U.S. dollar strengthened. Investors also remained cautious ahead of the U.S. Presidential election.
Matthew Turner, Precious Metals Strategist at Mitsubishi, told Reuters that although the race is close, if Romney won it would be a shock to the market. Turner said that the general expectation is of an Obama victory, which is more of the same and that’s bullish for gold.
On Monday, spot gold gained 0.4% to $1,683.40 an ounce. Gold futures for delivery in December on the Comex division of the New York Mercantile Exchange rose $8.40 to $1,683.60 an ounce.
Commenting on Friday’s sharp drop, Turner said that the selling was overdone on Friday and there is often a bounce back after a big fall as jewelers and investors take advantage of the price fall.
Silver prices also bounced back after Friday’s sharp decline. At last check on Monday, spot silver was trading 1% higher at $31.08 an ounce.
In late trading on Monday, the iShares Silver Trust (ETF) (NYSE: SLV) was up 0.78%, the ProShares Ultra Silver (ETF) (NYSE: AGQ) was up 1.57%, and the ProShares UltraShort Silver (ETF) (NYSE: ZSL) was down 1.54%.
Platinum rose on Monday, with spot platinum gaining 0.1% to $1,535.99 an ounce. Spot palladium, meanwhile, dropped 1.2% to $601.50 an ounce.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.