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 ETF Hits Record, Prices Head to $1,175

NEW YORK ( TheStreet) -- Gold prices Tuesday staged a big rally as investors fled to the safety of the hard asset after the S&P downgraded Greece and Portugal.

Gold for June delivery was surging $6.80 to $1,160.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Tuesday has traded as high as $1,165.30 and as low as $1,146.60. The U.S. dollar index was adding 0.61% to $81.71 while the euro was sinking 0.55% against the dollar. The spot gold price today was popping over $8, according to Kitco's gold index.

The gold price Tuesday was reversing earlier losses and was retaking the $1,160-an-ounce area. Standard & Poor's slashed Greece's sovereign credit rating to junk and lowered Portugal's long term credit rating from A+ to A negative. Investors were turning to the safety of the hard asset and were giving gold prices a boost.

Gold had been under pressure as today's options expiration triggered minor technical selling. Investors are still cautious ahead of Lloyd Blankfein's testimony to Congress over Goldman Sachs' behavior during the subprime mortgage crisis and the start of the Federal Reserve's two-day FOMC meeting.

The Fed is expected to keep key interest rates at zero or 0.25%, but any wording that the Fed is worried about inflation could pressure gold prices even further. Any end to the flow of free money will support a stronger dollar and make gold more expensive to buy in other currencies.

For now, fear and bargain hunting are buoying prices and pushing gold up to $1,175 an ounce. The gold ETF, SPDR Gold Shares (GLD), added more than 6 tons on Monday to a record 1,146.22 tons. The physically backed ETF is a popular way to invest in gold as a trader can own gold without the hassle. Shares were up 0.74% to $113.59.

"For the moment we expect gold to maintain its current sideways to higher trend," says James Moore, analyst at thebulliondesk.com in his daily metal report. "[Gold will be] underpinned by scaled down physical and investment buying but still requiring a close above $1,161 to confirm a break-out."

The price of silver was down 5 cents to $18.28 while copper prices were losing 7 cents to $3.45.

Most Recent Quotes from www.kitco.com

Platinum and palladium were also suffering minor losses despite the fact the Ford reported a blowout quarter. Ford (F) expects to sell 11.2 million cars in just North America for 2010 and is taking market share in Asia, Europe and South America. Platinum and palladium are key metals used in car manufacturing. CEO Alan Mulally said, "The recovery is fragile and the global auto industry continues to deal with excess capacity." Any ramp up in production could constrict the supply of platinum and palladium, which would support higher prices.
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
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
SYM TRADE IT LAST %CHG
ABX $10.57 0.00%
FCX $18.40 0.00%
GLD $111.76 0.00%
GSS $0.32 0.00%
GG $16.18 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs