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 Continue to Drop

NEW YORK ( TheStreet) -- Gold prices were down in the dumps again on Thursday as investors continued to sell the yellow metal for riskier assets.

Gold for February delivery bounced off session lows but still shed $2 to $1,371.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,380 and as low as $1,364.30 during Thursday's session. Despite the price drama, gold was able to hold to its $1,370 support area.

The U.S. dollar index was adding 0.63% to $80.79 while the euro was losing 0.96% to $1.30 vs. the dollar. The spot gold price was down $7.30, according to Kitco's gold index.

Three times gold prices have tried to break to and sustain new highs but to no avail, with 2011's 3.4% correction continuing.

"The high volume distribution and failed breakouts into new highs is indicating institutional selling," says Jeb Handwerger, editor of GoldStockTrades.com. Handwerger says a break below the 50-day moving average could trigger more sell orders, where traders are forced to sell to lock in profits, and prices could trend down to $1,275-$1,250.

Like other traders, Handwerger is holding long-term positions but selling the rest and will only buy gold again once the correction shakes out. Without this new money in the market, gold prices will have a tough time stabilizing.

Gold's downward trend started as profit-taking turned into technical selling and has now morphed into a return to risk appetite as better than expected data leaves safe have metals on the sidelines.

November manufacturing orders in Germany climbed 5.2% vs. a prior 1.9%. The jump blew past expectations. The news trumped weak retail sales in the eurozone for the same month as well as the U.K.'s weaker purchasing managers index for December, which slipped below the growth level of 50.

An improving jobs picture in the U.S. has also not helped gold. Initial jobless claims for the week ending Jan. 1 rose slightly to 409,000, but expectations are still high headed into Friday's jobs number. The unemployment rate is expected to slip slightly to 9.7% and where the private sector is expected to add anywhere from 225,000 to 162,000 jobs, according to Briefing.com.

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
WITE $33.70 -0.07%
GLTR $61.80 0.02%
SGOL $117.31 -0.05%
FCX $20.19 -3.26%
GOLD $71.45 -3.10%

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