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

Gold Prices Hit by Profit-Takers

Stocks in this article: GG AU

NEW YORK ( TheStreet ) -- Gold prices Wednesday settled slightly lower as investors took profits after gold's double-digit gain and improving risk appetite led traders away from gold and into stocks.

Gold for August delivery closed down $4.30 to $1,222.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Wednesday has traded as high as $1,228.90 and as low as $1,215. The U.S. dollar index was slipping 0.15% to $86.75 while the euro dipped 0.23% to $1.22 vs. the dollar. The spot gold price Wednesday lost more than $1, according to Kitco's gold index.

Profit-takers weighed on the gold price as the metal was one of the few assets Tuesday to yield a positive return. Risk appetite also returned today after a two-day losing streak and investors opted for stocks rather than gold. The Dow Jones Industrial Average closed 2.25% higher while gold slipped after rallying $12 on Tuesday.

The tug-of-war between profit-takers and bargain-hunters promises to continue and keep gold prices in a narrow trading range. Gold is expected to retain its appeal as a safe-haven asset as spooked investors search for a protected place to put their money. Although gold doesn't offer a dividend or a yield, it is a form of money that retains its value.

Right Time To Buy Gold




According to China's Xinhua news outlet, Iran's central bank will sell euros for the U.S. dollar and gold. Iran joins a host of other emerging countries like China and India that have been ramping up their gold reserves and discarding paper currencies. Typically central banks increase their gold reserves as needed apart from cost and fundamentals but Iran's shift out of euros could be regarded as a criticism of the currency's sustainability. India currently has 6% of its reserves in gold while Asia only holds 2% as compared to the U.S. which has 74%.

Gold prices will find direction from any news coming out of the eurozone countries as well as the U.S. nonfarm payroll report on Friday. The unemployment rate is expected to fall to 9.8% from 9.9% but a better-than-expected reading could improve risk appetite and prompt investors to rotate out of gold and into stocks. However, with selling pressuring running rampant, a disappointing number could result in a flight to safety and buoy gold prices. Gold is still trying to break its record high of $1,249 an ounce.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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