This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Prices Biding Time Until 2011

Stocks in this article: GOLD GLD

NEW YORK ( TheStreet ) -- Gold prices were trading sideways Wednesday on light technical trading, an indication the yellow metal may have to wait until 2011 to see more momentum.

Gold for February delivery settled $1.40 lower to $1,387.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,391.70 and as low as $1,385.60 during Wednesday's session. The spot gold price was adding 50 cents, according to Kitco's gold index.

The U.S. dollar index was flat at $80.73 while the euro was down 0.08% to $1.30 vs. the dollar. China announced it would buy €4-5 billion in Portuguese bonds, according to reports. China in recent years had been selling euros for dollars but changed its tune Tuesday when the country announced it would support the European Union's fight against sovereign debt.

Gold prices will probably remain stagnant for the rest of the week as trading gradually thins out ahead of the long holiday weekend.

"Many times holiday markets are choppy," says George Kleinman, president of Commodity Resource. Kleinman is still bullish on gold prices over the long term and thinks prices could hit $1,600 in 2011. For now though Kleinman says gold "has been in a downtrend that ended last week and the short term trend will probably chop around a bit with an upward bias."

For his part, Kleinman is sitting out the last two weeks of the year, preferring to eschew trading as volume deteriorates. "I don't see much happening in the next week or so" he says.

Gold prices got some support from news that the International Monetary Fund has completed the sale of 403 tons of gold originally announced in September 2009. Many analysts had been worried that a large gold sale would lead to an oversupply in the market and lower prices.

Gold prices weathered the storm well, helped by ballooning investment demand. During the same time frame, the SPDR Gold Shares (GLD), the largest gold exchange-traded fund, added 236.19 tons, more than half of what the IMF was selling.

"The fact that the IMF could sell over 400 tons of gold in such a short space of time, with no market disruption, demonstrates how deep and liquid the gold market is," says Natalie Dempster, director of Government Affairs for the World Gold Council, the sponsor of the GLD. "It also reflects the fact that the majority of gold sales were conducted off market with central banks."

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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