This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gold, Silver Prices Extend Losses

NEW YORK ( TheStreet ) -- Gold and silver prices extended their painful selloff as the metals were unable to find support and traders dumped positions.

Gold for June delivery lost $25.10 to settle off its session lows at $1,515.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded in a broad range between $1,543.50 and $1,505.50 Wednesday. The spot gold price was tanking $19, according to Kitco's gold index. Gold prices are still a long way off from $1,439, the spot price before April's monster rally.

Silver prices lost $3.19 to close $39.38, almost wiping out April's gains and off 26% from recent highs. The U.S. dollar index was losing 0.15% to $73.01 but had reversed steeper losses after the services sector contracted in April.

A volatile U.S. dollar and news of an official $116 billion bailout of Portugal weren't enough to buoy gold and silver. Both metals tried to find support levels in early trading but momentum selling dragged them lower.



Silver has led the charge down by oversold conditions and three margin hikes by the CME as the futures market tried to handle the volatility.

"The reason why the exchanges and clearing houses are raising their rates is because of these violent moves we have been having in silver, anywhere from 5-10% moves on a daily overnight basis," says Anthony Neglia, president of Tower Trading, who says the hikes are not affecting his silver positions.

Neglia likes silver above $42 and still believes with metal will hit $50, but that below $40 he would get bearish. He said, "$38 is your next level because that is where this whole move started from." There is some speculation that such a steep slide towards that level could ignite some tentative bargain hunting.

Gold, on the other hand, is a deeper and more liquid market, which makes it able to absorb volatility better, down only 4% from its record intra-day high of $1,577 an ounce. Mihir Dange, trader at Arbitrage, thinks that margin hikes won't hit the gold market.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GLD $108.67 -0.49%
AEM $23.62 -2.10%
EGO $2.78 -4.50%
HMY $0.79 -6.10%
IAG $1.54 -2.20%

Markets

Chart of I:DJI
DOW 16,267.50 +209.15 1.30%
S&P 500 1,933.58 +19.73 1.03%
NASDAQ 4,698.3230 +62.2180 1.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs