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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Gold Prices Wrap Volatile Week With a Gain

Limits were restricted to 25% of physically settled contracts for the spot month, meaning the month of expiration. According to initial estimates, this provision would likely impact just a handful of large position traders, but the CTFC did not vote on the rule, saying the commission needed more time to digest it.

Not only might this spur traders to look overseas but it might make them resistant to commit new capital until the rule is finalized. Gold prices could also get hit with a "buy on the rumor, sell on the news" trading strategy once limits are official approved.

Another potential headwind for gold is a slowdown of physical buying in India. Nadler says that rural consumers, who usually buy gold as a store of wealth will now opt for durable goods like appliances and cars. About "200 to 250 tons per annum is at stake here," Nadler estimates, "China better step up to the buying plate."

Also according to reports, India's wedding season, which starts in September and usually lasts for three months, is has been weak. The season is typically met by strong gold jewelry buying and the lack of demand could put some pressure on prices for the short term.

Silver prices will take a hit off of slumping Indian demand as well as consumers has been opting for a mix of gold and silver jewelry to help offset the cost. But silver is in luck in that it is used in many of the now-sought appliances and technology items. Silver added 35 cents to $29.13 while copper closed up 4 cents to $4.15.

Most Recent Quotes from www.kitco.com

Gold mining stocks, a risky but potentially profitable way to buy gold, were mixed Friday. Kinross Gold (KGC - Get Report) was down 0.49% to $18.19 while Goldcorp (FCX) was 0.96% lower at $44.54. Other gold stocks New Gold (NGD - Get Report) and Gold Fields (GFI - Get Report) were trading at $9.32 and $17.80, respectively.

>> Video: 3 Winning Gold Stocks for 2011

The popular gold exchange-traded fund, SPDR Gold Shares (GLD), were trading slightly higher at $134.41 after the ETF shed almost 3 tons Thursday.

-- 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 http://twitter.com/adsteel.

>To submit a news tip, send an email to: tips@thestreet.com.

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
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 $115.00 -0.10%
GFI $4.19 -0.24%
GG $20.69 0.88%
KGC $2.75 1.85%
NGD $3.71 0.00%

Markets

DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

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