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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Prices Rebound

NEW YORK (TheStreet) -- Gold prices were rebounding Friday as the market shrugged off the Federal Reserve's emergency lending rate hike.

Gold for April delivery was rising $6.30 to $1,125 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,127.40 and as low as $1,099.30. The U.S. dollar index was sinking 0.11% to $80.84.

Gold prices pared their losses Friday as they shook off the news that the Federal Reserve raised the discount interest rate by a quarter percent to 0.75%.

Also helping gold prices stage a come-back was the news that the core consumer price index fell 0.1% in January easing inflation expectations and worries that the Fed would raise key interest rates sooner than expected. Investors' risk appetite returned as they bought up dollar-backed commodities.

Earlier in trading, gold price fell as much as $8 as many investors anticipated an end to free money. Inflation has typically been a long-term driver for gold prices. Many investors from George Soros to John Paulson have been buying gold as lower interest rates and more money-printing could devalue the U.S. dollar in the long term.

If the Fed decides to aggressively fight inflation and raise interest rates, gold prices could come under pressure. "In the end, certainly for gold, I think it's real interest rates that matter most [which are now negative]," says Jeffrey Nichols, senior economic adviser to Rosland Capital. "It's only when real interest rates turn positive, and significantly so, that it presents a meaningful tightening in monetary policy."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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