Silver Survives Test, Gold Traders Shove All-in (SLV) (GLD) (IAU)
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Precious metals prices are on the move in early trading on Friday. After testing lows at $26, the price of spot silver reversed weekly losses and is back above $27.50. iShares Silver Trust ETF (NYSE: SLV) opened higher by 4 percent. SPDR Gold Trust ETF (NYSE: GLD) was higher by 2.5 percent, as spot gold adds $40 on the day, forcing gold prices back near critical levels at $1600/oz.
GLD and SLV are both reacting to headlines out of the EU summit, which is driving the price of the Euro higher and supporting metals. There is also growing hope among GLD and SLV traders that a change of tone regarding fiscal policy in Europe will support growth and lead to higher inflation in the region, which has been plagued with deflation recently due to an economic contraction caused by austerity.
Market Vectors Gold Miners ETF (NYSE: GDX) is also on the move today and is trading up 3.5 percent.
GLD and SLV could come back under pressure late in the day, as some investors may use today's rally as an opportunity to exit positions that are underwater, and it remains to be seen how long the legs are on today's rally since similar short-term moves fizzled out fairly quickly.
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GLD and SLV are both reacting to headlines out of the EU summit, which is driving the price of the Euro higher and supporting metals. There is also growing hope among GLD and SLV traders that a change of tone regarding fiscal policy in Europe will support growth and lead to higher inflation in the region, which has been plagued with deflation recently due to an economic contraction caused by austerity.
Market Vectors Gold Miners ETF (NYSE: GDX) is also on the move today and is trading up 3.5 percent.
GLD and SLV could come back under pressure late in the day, as some investors may use today's rally as an opportunity to exit positions that are underwater, and it remains to be seen how long the legs are on today's rally since similar short-term moves fizzled out fairly quickly.
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