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 Prices Shatter $1,200 Mark

NEW YORK ( TheStreet) -- Gold prices shattered the $1,200 an ounce mark on their way to a new record high Tuesday, as risk appetite returns.

Investors fled the dollar and bought riskier assets like commodities and equities as Dubai debt fears dissipated. Dubai is currently working with lenders to restructure half of its $60 billion debt which reassured investors that the problem would be contained and not spill over to other markets.

Gold for February delivery was soaring $20.40 to $1,202.40 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,204.00 and as low as $1,176.40.

Silver was rising 70 cents to $19.23 while copper prices were up 5 cents to at $3.23.

Gold prices had been running out of steam, leading some analysts to anticipate a deeper correction, but the weak U.S. dollar pushed prices higher.

"I think over the next 60-90 days, I don't think it's unreasonable to assume that $1,250 could be another possible target," says Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund. "We still haven't hit the prior lows for the U.S. dollar. ... I think if we get to that level I think we could see gold somewhere between $1,250 and perhaps even $1,300."

The U.S. dollar index was falling 0.66% to $74.30.

Mining stocks, viewed as a riskier, more profitable way to invest in gold, were popping. Barrick Gold (ABX - Get Report) was rising 7% to $45.48 after the company announced it was completely de-hedged and fully leveraged to gold's spot price. Barrick, however, still has a $700 million obligation associated with its remaining floating contracts. Another big cap miner, Newmont Mining (NEM), was up 4.23% to $55.91. Shares of Freeport McMoran Copper & Gold (FCX - Get Report) were adding 2.23% to $84.65 while Yamana Gold. (AUY - Get Report) was rising 4.28% to $13.90.

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
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
ABX $12.56 -1.50%
AUY $4.00 -0.74%
FCX $20.29 -1.80%
MEN $11.66 -0.26%
GDXJ $24.95 0.69%

Markets

DOW 17,978.25 -56.68 -0.31%
S&P 500 2,102.13 +1.73 0.08%
NASDAQ 5,019.6940 +25.0920 0.50%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs