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 Settle Near Record

Stocks in this article: GLD GS UXG

Gold prices have tried three times to break and sustain record highs. Gold's record settle was Dec. 6 at $1,416.10 an ounce -- a level almost reached at Wednesday's close -- while the intraday high came on Dec. 7 at $1,432.50. Every time gold tops $1,400, however, substantial profit-taking has prevented any chance of it another leg higher.

On Wednesday though, it looks like buying and U.S. dollar weakness trumped profit-taking. Volume was scarce ahead of the New Year's holiday, so a trend might have to wait until next year.

Scott Redler, chief strategic officer at, says he needs to see the gold price close above $1,400 for a few trading days before he believes this breakout is sustainable.

"If the bears can't fill that gap" left from Tuesday's double-digit rally, "there's pressure there to the upside, and it means the bulls are in control," says Redler. The longer gold can hold that gap, the more short-traders will be forced to cover their positions and the more momentum traders will be forced to chase higher prices. This combination could be a perfect storm for an aggressive pop in gold.

If the price gap is filled, Redler predicts that gold will stay range-bound between $1,320 and $1,400 and that prices will need more time before a bigger rally.

China also raised interest rates again Wednesday. The rediscount rate, the interest rate banks must pay when they borrow money from the central bank, was increased by 45 basis points. The relending rate was raised by 52 basis points.

Today's rate hikes are not expected to seriously control inflation in the country, but are the follow-ups to China's more aggressive increase in the lending and deposit rates last Saturday. Gold has consistently shrugged off moves by China to combat inflation and appeared to be following suit today.

Silver prices added 38 cents to $30.70, a record close, while copper was down 1 cent at $4.31, after hitting another record high Tuesday of $4.33 .

Most Recent Quotes from

Gold mining stocks , a risky but potentially profitable way to buy gold, were mixed. Kinross Gold (KGC) was 0.21% lower at $18.88 while Freeport McMoRan Copper & Gold (FCX) was adding 0.73% at $119.15. Other gold stocks New Gold (NGD) and Gold Fields (GFI) were trading at $9.60 and $17.82, respectively.

-- 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

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