This Day On The Street
Continue to site
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 Settle Near $1,200

NEW YORK ( TheStreet) -- Gold prices Monday rose near $1,200 an ounce as investors opted for the safety of the precious metal and sold out of stocks to buy gold.

Why Gold Prices Rise

Gold for June delivery added $17.90 to $1,194 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Monday has traded as high as $1,195.90 and as low as $1,176.80. The U.S dollar index was rising 1.21% to $86.41 while the euro was slumping 1.87% to $1.23 against the dollar. The gold spot price Monday gained $15, according to Kitco's gold index.

Gold prices rallied as fear continued to reverberate throughout global markets which triggered a flight to safety into gold. Markets were volatile Friday as investors unwound some of their positions ahead of options expirations. Those investors who were betting heavily against the market and the euro sold gold and raised cash to reverse some of their short bets.

On Monday, the fear trade was back on as the euro headed toward its four-year low and gold became more appealing as a form of money that keeps its value. Prices are expected to stay in a tight volatile trading range as metal contracts on the Comex are set to expire on Tuesday.

Over the weekend, Spain's central bank bailed out the regional savings bank CajaSur, only the second bank since March 2009 which highlighted the financial fragility of eurozone countries. Germany also announced plans to slash its budget by €10 billion every year until 2016 to keep its finances in check. Germany follows Britain, Greece, Spain and Portugal with budget cuts that could crimp growth in Europe and weigh on prospects of a global economic recovery. These fears are curbing risk appetite and strengthening demand for gold.

"The ongoing uncertainties created by the Eurozone debt situation will continue to draw investors towards safe-haven assets such as gold and the dollar," says James Moore, analyst at in his daily metals report. "[But] short-term [gold is] vulnerable to profit taking and cash generating selling pressure."

Silver prices added 34 cents to $17.98 while copper prices rose 8 cents to $3.14. Investors were buying copper, a key metal in industrial and electrical use, after China indicated it would reign in its attempts to curb spending due to the eurozone debt crisis. The move reassured traders that China would keep spending and building increasing demand for the base metal.
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GLD $101.92 0.66%
ABX $7.34 3.23%
AUY $2.10 5.53%
FCX $8.18 0.99%
GG $11.81 2.25%


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs