This Day On The Street
Continue to site
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 Prices Dip Amid Muddled Fiscal Cliff Talks

NEW YORK ( TheStreet) -- Gold prices were dipping Friday as fiscal cliff headlines continued to roil investors of the yellow metal.

Gold for December delivery was off $16.80 to settle at $1,712.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,733.70 and as low as $1,711.80 an ounce, while the spot price was dropping $14.20, according to Kitco's gold index.

"The broader news right now is that there's still worry over the fiscal cliff, and that's probably still the headline news," said Will Rhind, managing director at ETF Securities U.S.

Silver prices for March delivery closed down $1.15 to $33.28 an ounce, while the U.S. dollar index was losing 0.06% to $80.16.

President Barack Obama emerged Friday at a K'Nex toy factory to call out House Republicans and others who have resisted his calls for tax increases on the wealthiest 2% of earners, along with capital gains and dividend taxes to raise revenue in a new budget.

House Speaker John Boehner spoke shortly after the president's speech and said that the White House had not yet released what he called a serious proposal.

The posturing among politicians on both sides of the aisle has left most investors with little direction as to what deal they may cut before deep spending cuts and tax increases go into effect..

German lawmakers approved the most recent bailout agreement to Greece, even after the International Monetary Fund said Thursday that it would not disburse Greece's impending round of bailout loans until the country completed a voluntary buyback of its debt.

Selling early in Friday's session initially came from first notice day, when physical delivery of the yellow metal must occur, noted George Gero, precious metals strategist at RBC Wealth Management.

Early rumors have started to emerge about the possibility of the Federal Reserve implementing a new round of some type of quantitative easing as Operation Twist is set to expire at the beginning of 2013. Such a move likely would be viewed as a continuation of more inflationary policy and make gold the safe-haven hedge.

"How do you morph out of Operation Twist? And then you've got the treasury secretary [Timothy Geithner], as a part of their little negotiating tactic, saying 'well why don't we just have a permanent debt ceiling that's unlimited," said Jeffrey Wright, managing director of metals and mining at Global Hunter Securities. "If that was ever implemented ... we are the Weimar Republic ... that would be a big mover for gold."
1 of 2

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GLD $121.29 1.89%
AU $15.49 6.61%
GFI $4.38 7.60%
RGLD $60.22 3.40%
AAPL $95.03 -2.90%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs