EU Sovereign Debt Bodes Well for Gold and Silver Prices

(AXcess News) New York – The market in the US is closed due to Presidents Day, but in Europe investors remain concerned over sovereign debt and how the EU will tackle the problem. Those concerns continued to buoy the dollar and with it, gold and silver prices.

Midmorning in New York saw the dollar slide to 1.3601 euros for a loss of 0.0035. The in London, the dollar fell 0.0028 to $1.5673 pounds sterling and in Japan, the greenback rose 0.0040 to 89.965.

Action in world currency shows investors are continuing to show concern over Greece as to whether or not the European Union can come up with a way to solve the burden of debt. Mixed feelings have caused metals to trade upward with gold and silver prices rising marginally over the closing price in New York on Friday.

Gold moved higher, trading at $1,101.10 from $1,092.40 on Friday.

Spot silver rose to $15.55 per ounce over Friday’s closing bullion price of $15.48. Fixed silver traded at 1557 over Friday’s 1553.

Standard Bank precious metals analysts Walter de Wet and Leon Westgate say investors should be watching gold and silver ‘speculative length’. The commodity analysts believe that a rally in silver could be in the works, though at the present the Bank is not calling silver a ‘play.’

“Given that silver has a beta of greater than 1 with gold, should gold push higher, we would look for silver to outperform gold,” said de Wet.

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Alan Fein

Alan Fein is a versatile old-school business writer, who covers a range of business-related news, especially when it relates to finance.