This Day On The Street
Continue to site
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

Gold Prices End Sideways on Thin Volume

An explosive conflict between North and South Korea didn't materialize as North Korea backed off previous statements that it would retaliate after South Korea's military exercise off the coast of Yeonpyeong. Analysts thought that any immediate conflict could push prices up to $1,425, but without that crisis catalyst gold might just bump along at current levels.

>> Video: What North and South Korea Mean for Gold Prices

Lind-Waldock's Streible has been nibbling away at futures positions "to be positioned before the start of the year because I think right out of the gate I think funds and allocation models are going to start coming out and are going to be more heavily weighted towards metals."

One interesting item to note was earnings from packaged food company ConAgra (CAG - Get Report). The company reported a 16% fall in profit in part because of rising commodity costs that the company couldn't pass on to the cash-strapped and discount-minded consumers.

From the Federal Reserve's standpoint, inflation in the U.S. is too low with the last core Consumer Price Index reading for November pegging inflation up 0.6% vs. a year ago. But food companies are saying something different.

ConAgra's CEO Gary Rodkin said "higher-than-planned inflation weighed on Consumer Foods' profits despite progress in overall unit market shares and volume." Rodkin also sees cost inflation accelerating.

Gold is very attractive for investors in times of inflation because the metal retains more of its value as a store of wealth. Many long-term investors had been buying gold as a hedge against inflation, which, as of yet, hadn't materialized. Consistent reports from food providers like ConAgra might reignite this thesis for gold.

Silver prices closed up 3 cents to $29.39 while copper added 7 cents to $4.27.

Most Recent Quotes from www.kitco.com

Gold mining stocks, a risky but potentially profitable way to buy gold, were mixed. Freeport McMoRan Copper & Gold (FCX - Get Report) was up 1.96% at $116.28 while Kinross Gold (KGC - Get Report) was 0.49% lower at $18.33. Other gold stocks New Gold (NGD - Get Report) and Gold Fields (GFI - Get Report) were trading at $9.22 and $17.51, respectively.

-- Written by Alix Steel in New York.

>To contact the writer of this article, click here: Alix Steel.
2 of 3

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
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
SYM TRADE IT LAST %CHG
CAG $44.13 0.43%
FCX $12.50 1.38%
GFI $2.79 1.45%
KGC $1.79 6.55%
NGD $2.23 5.19%

Markets

Chart of I:DJI
DOW 17,751.39 +121.12 0.69%
S&P 500 2,108.57 +15.32 0.73%
NASDAQ 5,111.7330 +22.5270 0.44%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs