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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Gold Prices End Lower

Stocks in this article: AUFCX

NEW YORK ( TheStreet ) -- Gold prices Friday settled under $1,180 as investors opted for cash amid global uncertainty, options expiration and a struggling equity market.

Gold for June delivery ended down $12.50 to $1,176.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high as $1,187.60 and as low as $1,166. The U.S. dollar index was slipping 0.76% to $85.36 while the euro rallied 0.91% to $1.25 against the dollar. The spot gold price Friday was down over $5, according to Kitco's gold index, as bargain hunters tentatively bought the physical metal.

Gold prices have lost 4.5% or $56 this week as global turmoil forced investors to sell gold, one of the only assets to return a recent profit, in order to raise money. The futures market ended down double digits versus the phsyical spot price as traders were forced to sell some gold positions ahead of Tuesday's options expirations and to cover equity losses.

The Strongest Metal: Gold




Germany has approved the $1 trillion bailout package for European Union nations, but the news did little to calm investor jitters. Worries that inflation and budget cuts across Europe would crimp any kind of growth were stifling markets as no one wanted to be heavily invested in the short term.

As investors dumped gold, they sought the perceived safety of U.S Treasuries. The yield on U.S. 10-year bonds fell to 3.2% as investors piled in. Also contributing to lower gold prices is Friday's options expiration, which typically results in a slight selloff for gold.

Analysts are looking at $1,150 as a key resistance area as bargain-hunters en masse stay on the sidelines. "Below that there's really not a lot of support until you get down to the $1,100 level," says David Morgan, founder of Silver-Investor.com. "The insiders have been out of the market for a very long time. We've been in a distribution pattern for a very long time." Uncertainty could crimp buying and weigh on gold prices over the short term.

Adding to market woes are fears that China will slow its spending. China said its economy grew 11.9% in the first quarter and since then the government has been taking steps to curb growth. The central bank raised the amount banks need to hold in their reserves in order take money out of circulation to combat inflation. The less money in circulation, the less people and companies will spend.

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!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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