Gold and silver prices have eased in trading today as the euro dipped against the dollar. Gold, however, is headed for its biggest two-gain in two months.
At last check, spot gold was trading 0.59% lower at $1,639.99 an ounce. Gold futures for delivery in February is currently trading 0.32% lower at $1,642.40 an ounce.
Spot gold prices have risen 5% so far this year even though the U.S. dollar has strengthened. Michael Lewis, analyst at Deutsche Bank, told Reuters, that he is always a bit suspicious of interpreting too much of price action in the first couple of weeks of a new year. Lewis said that it is not typically very fundamental and it could well be valuational momentum that is driving the moves rather than anything else. Lewis, however, said that in the longer term, indications were positive for gold.
Lewis said that central banks are diversifying, which is a bigger flow story than exchange-traded fund buying. Lewis also expects dollar weakness to come back.
Silver prices are also falling in trading today. At last check, spot silver was down 1.2%.
In pre-market trading in New York, the iShares Silver Trust (ETF) (NYSE: SLV) is currently down 1.06% to $29, while the ProShares Ultra Silver (ETF) (NYSE: AGQ) is down 2.26% to $48.01.
The ProShares UltraShort Silver (ETF) (NYSE: ZSL), which takes a short position on silver, is up 2.04% to $13.50 in pre-market trading in New York today.
In other precious metals, platinum and palladium are also lower in early trading today. At last check, spot platinum was down 1.1% to $1,471 an ounce, while spot palladium was down 1.4% to $627.22 an ounce.
