This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Gold Prices Fall on Greece, Spain Woes (Update 1)

Updated from 10:12 a.m. EDT with settlement prices

NEW YORK ( TheStreet) -- Gold prices sank Monday as eurozone fears mounted that Greece would default and Spain would need more help.

Gold for August delivery settled down $5.40 to $1577.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold priced traded as high as $1582.40 and as low as $1562 an ounce, while the spot price was down $8.80, according to Kitco's gold index.

"If you have two countries in major trouble at the same time, that of course is somewhat anti-inflationary because that means the economic recovery is going to take a little bit longer than people expect, even with stimulus," said George Gero, precious metals strategist at RBC Wealth Management.

Silver prices for September delivery were down about 26 cents to $27.04 an ounce, while the U.S. dollar index was up 0.29% to $83.74.

Gero said the selloff isn't as much because of sellers as it is because of a lack of buyers who are concerned about the S&P slumping, which could signal serious weakness in equities.

"We need dollar weakness, that's the only way we're going to get this thing to explode," said Phil Streible, "Look at the dollar ... there's not a chance that we're going to move up aggressively."

Streible pointed out that when gold rises above $1580 it doesn't appear to be much of a safety and that few buyers come in when it is that high; however, traders begin to buy when the price drops into the $1550 range.

Gold prices have been stuck in a repetitive pattern for weeks and traders could expect more of the same to continue in the short-term.

Gold mining stocks were mostly lower on Monday. Eldorado Gold (EGO - Get Report) led the dip at $9.82, down 53 cents, or 5.1%, while Randgold Resources (AUY - Get Report) was at $83.61, down $2.58, or 3%.

Among other mining stocks, Goldcorp (GG), Yamana Gold (AUY - Get Report) and Barrick Gold (ABX - Get Report) were down 2.4%, 2.4% and 2.8%, respectively.

-- Written by Joe Deaux in New York.

>Contact by Email.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ABX $11.29 0.00%
AUY $3.83 0.00%
EGO $4.86 0.00%
GOLD $70.96 0.00%
KGC $2.36 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs