This Day On The Street
Continue to site right-arrow
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 Close to New Highs

Stocks in this article: GLD ABX

NEW YORK ( TheStreet ) -- Gold prices were popping Friday on technical trading and signs that the U.S. economy is slowing, which prompted another flight to safety into gold.

Gold for August delivery settled $10.30 higher to $1,256.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price today has traded as high as $1,259.50 and as low as $1,241.60. The U.S. dollar index was slipping 0.51% to $85.32 while the euro was adding 0.39% to $1.23 against the dollar. The spot gold price Friday was popping more than $10, according to Kitco's gold index.

Gold prices made a run to conquer their previous record of $1,264 an ounce, on strong technical trading and safe haven buying, although prices stopped short of the $1,260 level.

Part of gold's move Friday was short covering and book squaring, which ramped up as the second-quarter came to a close. Also, headed into summer weekends, investors are opting for cash and gold as a safe place to put their money to protect themselves against negative headline news.

Another part of gold's rally was relief that the markets finally have the specifics on the financial regulation bill. A final bill is expected to be approved by Congress next week and by President Obama before July 4th. The big news for gold bugs was the fact that investment banks do not have to leave the gold business and will still be able to use 3% of their funds to trade the market. They'll also be able to use credit default swaps in "safe" assets like gold to hedge risk.

The final factor moving gold prices was risk aversion. The U.S.' first-quarter GDP number was revised down for a third time to 2.7%, indicating that the U.S. economy was growing much slower than expected.

"Bullion was higher on short-covering and technicals," says Jon Nadler, senior analyst at "But participants were likely eyeing the GDP data with an expectation that risk appetite would suffer in its wake and that safe-haven plays were shaping up as the play of the day."

The popular gold ETF, SPDR Gold Shares (GLD), added another 3.04 tons on Thursday as investors continued to buy the precious metal as the Dow Jones Industrial Average sunk triple digits.

1 of 2

Select the service that is right for you!

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • 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