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 at Another Record High

NEW YORK ( TheStreet) Gold prices popped to further record highs Wednesday as momentum buying and currency fears pushed investors into the precious metal.

Gold for December delivery closed $7.40 higher to $1,347.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,351 and as low as $1,340 during Wednesday's session.

The U.S. dollar index was down 0.48% at $77.43 while the euro was up 0.75% to $1.39 vs. the dollar. The spot gold price Wednesday was adding more than $5, according to Kitco's gold index.

Gold prices have gained 2% this week on high volume. Most analysts expect any profit-taking to be met with dip-buying to support higher prices.

James Moore, analyst at, said the buying "mentality looks set to provide additional upside momentum with gold potentially looking to target $1,400."

George Gero, vice president of global futures at RBC Capital Markets, believes there is a perfect storm brewing for stronger gold prices with higher open interest in the futures market teaming up with higher moving averages and higher closes. The technicals are all met against the backdrop of weaker global currencies as governments race to debase their currencies to increase exports and spur growth.

"Other currencies [are] weakening to the point that the world needed to hedge the devaluation with gold," says Gero. Morgan Stanley raised its bullish forecast to $1,512 an ounce.

The story continued Wednesday with the private sector shedding 39,000 jobs in September, according to the most recent ADP report. The disappointing number is helping support the belief that the Federal Reserve will expand its balance sheet and buy more government debt. The Fed could join the Bank of Japan which announced a $60 billion asset purchase program of its own earlier this week.

Worries in Europe also continue as Fitch downgraded Ireland from AA- to A+ with a negative outlook due to bigger-than-expected costs related to bailing out its banks. The International Monetary Fund lowered its 2011 growth forecast for advanced economies to 2.2% from 2.4%.

Record high gold prices, however, have some analysts warning of a violent pullback and increased volatility especially headed into Friday's jobs number. A strong number could crimp the size of the Fed's money printing and bond purchase program while a weak number would all but ensure another round of quantitative easing.
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
AUY $1.84 0.00%
FCX $10.62 0.00%
GLD $108.99 0.00%
GFI $2.84 0.00%
NGD $2.43 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs