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 Slump on Profit-Taking, Dollar Strength

Moody's is concerned about Spain's high financing requirements for 2011. For its part, the country tried to reassure investors that it doesn't need any financial aid.

Meantime, the U.S. core Consumer Price Index proved to be a mixed bag for gold. The reading for November was in line with expectations of 0.1%, which brought inflation to 0.6% vs. a year ago. Gold is attractive in times of inflation so the lackluster data put a crimp in gold's safe-haven appeal.

On the flip side, low inflation means that the Federal Reserve will likely make no changes to its $600 billion bond-buying program and gives more weight to some analysts' predictions that the Fed will have to pursue more rounds of quantitative easing to keep the economy going.

The Fed's low-end inflation target is 2%, compared with China, the fastest growing country in the world, which just raised its inflation target to 4%.

Daniel Wills, senior analyst at ETF Securities, says that near term inflation, led by the U.S., remains subdued but that price pressures in energy and food from emerging markets like China could color the worldwide inflation landscape over the long term. "This could spell higher inflation ahead."

Silver prices shed 53 cents to $29.25 while copper ended down 7 cents to $4.13. The industrial metals were suffering over worries that debt problems and austerity measures in EU countries might crimp spending. That struggle will take center stage Wednesday in Ireland as the Parliament passed approval for its bailout money from the International Monetary Fund and EU.

Most Recent Quotes from

Gold mining stocks, a risky but potentially profitable way to buy gold, were drifting lower. Yamana Gold (AUY - Get Report) was down 1.19% to $12.42 while Goldcorp (GG - Get Report) was 0.89% lower at $45.75. Other large gold stocks Agnico-Eagle (AEM - Get Report) and Eldorado Gold (EGO - Get Report) were trading at $80 and $17.97, respectively.

More on Gold
Gold Price News
How to Invest in Gold

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Readers Also Like:

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 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 $123.18 0.91%
IAU $12.44 0.77%
AEM $46.27 2.90%
AUY $4.68 4.00%
EGO $4.05 4.40%


Chart of I:DJI
DOW 17,648.59 -12.12 -0.07%
S&P 500 2,048.45 -2.18 -0.11%
NASDAQ 4,714.6390 -2.4550 -0.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs