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
TheStreet Open House

Gold Prices Wrap Volatile Week With a Gain

NEW YORK ( TheStreet) -- Gold prices stemmed losses Friday but the worst might not be over.

Gold for February delivery added $8.20 to $1,379.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,378.50 and as low as $1,365.40 during Friday's session.

The U.S. dollar index was adding 0.46% to $80.40 while the euro was down 0.45% to $1.31 vs. the dollar. The spot gold price Friday was up $7.60, according to Kitco's gold index.

Gold has had a difficult and volatile week. The metal started off on a positive note, breaking $1,400 and adding almost $20 in two days. But the rally couldn't hold and the metal has sunk $33 since Wednesday. Among fundamental issues, gold has been fighting with technical trading.

Traders have been selling the metal to book profits headed into the end of the year but any substantial dip has been met with buying as traders buy gold to show they own it. This "bargain" hunting supported prices in late-day action on Friday.

Another factor in this week's volatility was that Friday is a quadruple witching session, a day when contracts for stock index futures, index options, stock options and single stock futures all expire.

Gold prices broke a key support level of $1,370 on Thursday but managed to attract some buyers to close at $1,370 an ounce. Jon Nadler, senior analyst at Kitco.com, says this recent rally has been momentum driven and "we could be looking down into the $1,320-$1,350 as a first target." Nadler does not expect bullish sentiment to return "unless gold takes out its previous pinnacle of about $1,430."

Gold prices were finding some support as a safe-haven asset for investors as Moody's downgraded Ireland's government bonds by five marks and maintained a negative outlook, which means that further downgrades are possible.

At the final European Union summit of the year, leaders agreed to provide a permanent crisis lending facility starting in 2013, after the temporary one expires, but more radical measures to help short-term problems weren't agreed upon.

Gold markets don't like this kind of uncertainty and there was some found in the U.S. as well. The Commodity Futures Trading Commission agreed to position limits Thursday as part of its job in interpreting the Dodd-Frank financial reform legislation.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
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!
SYM TRADE IT LAST %CHG
GLD $115.52 0.69%
GFI $4.39 0.00%
GG $18.59 -2.00%
KGC $2.36 -4.06%
NGD $3.61 -3.99%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

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