This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Gold Prices Rise Amid Short-Covering (Update 1)

Updated from 10:58 a.m. EST with video interview and settlement prices

NEW YORK ( TheStreet) -- Gold prices rose Tuesday as investors took to short-covering on the yellow metal.

Gold for February delivery rose $7.90 to settle at $1,660.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,665 and as low as $1,653.50 an ounce, while the spot price was tacking on $8.50, according to Kitco's gold index.

"Thousands of contracts of 1700 strike puts were in the money and so short covering ensued this morning to re-align portfolios," George Gero, precious metals strategist at RBC Wealth Management, wrote in a note on Tuesday. Gero also said in a phone interview that Monday's report of December durable goods orders, which came in better than expected, suggested the economy has been on the mend -- a signal that more buying could be somewhat inflationary in the near term.

Silver prices for March delivery gained 40 cents to close at $31.18 an ounce, while the U.S. dollar index was dipping 0.24% to $79.57.

Gold investors were looking ahead to a busy week for the precious metal as the Federal Reserve releases its Federal Open Market Committee meeting announcement. Traders will be looking for any new language about the length of time for continuation of quantitative easing programs.

Friday marks the first day of February, which means the Bureau of Labor Statistics will report the January unemployment rate and nonfarm payrolls. With the Fed's low-interest rate policy tied to a 6.5% unemployment rate target, gold investors will be watching for any dip in the current 7.8% rate to gauge how much longer they expect the central bank to continue monetary stimulus.

The Institute for Supply Management's manufacturing Index is released on Friday. Any improvement in the report would suggest continued progress in economic recovery, which could be negative for gold prices.

Gold mining stocks were mostly higher on Tuesday. Shares of Yamana Gold (AUY) were adding 2.2%, and shares of Goldcorp (GG - Get Report) were rising 1.9%

Among volume leaders, Barrick Gold (ABX - Get Report) was off 0.26%, but Kinross Gold (KGC) was climbing 2.2%.

Gold ETF SPDR Gold Trust (GLD) was up 0.45%, while iShares Gold Trust (IAU) was increasing 0.53%.

-- 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!
SYM TRADE IT LAST %CHG
GLD $112.00 -2.60%
IAU $11.28 -2.70%
ABX $11.38 -6.60%
GG $19.12 -7.60%
NG $3.29 -4.60%

Markets

DOW 17,862.69 -273.03 -1.51%
S&P 500 2,073.35 -27.69 -1.32%
NASDAQ 4,930.9190 -51.89 -1.04%

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