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NEW YORK ( TheStreet ) -- Gold and silver prices managed to regain ground Thursday after tanking in the early hours of trading. Gold for June delivery settled $5.40 higher at $1,506.80 at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,506.50 and as low as $1,477.60. The spot gold price was up $1.80, according to Kitco's gold index. Silver prices for July deliver settled 71 cents lower at $33.79 an ounce. Reportedly, the Shanghai Gold Exchange raised its own margin requirements for silver, following the CME to make it more expensive to buy a silver contract to manage volatility.
James Moore, research analyst at FastMarkets, thinks that physical buying of gold and silver will provide some support for gold and silver but that more selling in the short term could ensue as speculative traders and investors curb their exposure, with "gold potentially testing back to last week's lows around $1,462 while silver could potentially extend back towards the $30-$32 an ounce." The 200-day moving average, an area where silver could find support, is $29.17. A stronger U.S. dollar will also continue to put pressure on gold, as the dollar-backed commodities become more expensive to buy in other currencies. The U.S. dollar index was adding 0.07% to $75.63, and was staying strong as investor opted for that currency rather than the euro in light of Greece debt worries and restructuring fears. Many traders had also been betting on the euro as the stronger currency and betting against the dollar as the Fed remained committed to low interest rates, but this trade is now being reversed. Gold mining stocks were falling Thursday. Kinross Gold ( KGC) was losing 0.8% to $14.43 while Randgold Resources ( GOLD) was down 1.8% to $76.63. Other gold stocks, Agnico-Eagle ( AEM) and Eldorado Gold ( EGO) were both down 1.6%.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel. >To follow the writer on Twitter, go to http://twitter.com/adsteel.