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
TheStreet Open House

Gold Prices Settle for Slight Gain

Stocks in this article: GLDIAU

NEW YORK ( TheStreet) -- Gold prices clawed their way higher Wednesday as moderate buying continued, but prices were still trapped in a tight range.

Gold for February delivery added $2 to $1,370.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,378.90 and as low as $1,365.50 during Wednesday's session. The spot gold price was adding more than $3, according to Kitco's gold index.

The U.S. dollar indexwas drifting lower down 0.62% to $78.50 while the euro was rallying 0.74% to $1.34 vs. the dollar.

Gold prices seem to be looking for some kind of catalyst to break them out of their range of $1,320-$1,420 an ounce. Traders are nibbling at gold after the metal stemmed its Friday selloff, but any big positions are being kept on the sidelines until an upward trend can be confirmed. Any run-up, as was seen in early morning trading, can also provide an opportunity for investors to take profits.

The popular gold exchange-traded fund, SPDR Gold Shares (GLD), shed almost 3 tons on Tuesday as light profit-taking continued while iShares Gold Trust (IAU) has not adjusted its tonnage since Dec. 23.

Scott Redler, chief strategic officer for T3Live.com, says that gold has lost its identity a bit and it's no longer a fear trade.

"I think gold could regain this identity as we go into the second quarter" as debt issues in U.S. states and controversy on raising the debt ceiling put money issues in the foreground.

"Long term, as long as the Fed continues to pump money into the system and there are problems in the eurozone," argues Phil Streible, senior market strategist at Lind-Waldock, "I think gold will continue to catch a bid."

>> Video: ETF Sees Investors Holding Gold

Jim Cramer writes on RealMoney.com that he still likes gold as a hedge, that "the amount of money that is being printed worldwide is outrageous and I can only conclude that you need something as a hedge to the printing press."

Cramer likes the GLD and currently owns NovaGold (NG), a junior gold and copper miner, for his charitable trust, Action Alerts Plus.

The spot price is also stronger than the futures price which points to strong physical buying most likely from emerging-market countries like India and China where inflation is high. China is also buying gold ahead of its New Year celebration in February.

George Gero, vice president at RBC Capital Markets, also notes that ETFS Physical Asian Gold (AGOL), which launched on Friday, helped physical demand as gold was needed to fulfill orders. The ETF stores its gold in Singapore.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 16,677.90 +216.58 1.32%
S&P 500 1,950.82 +23.71 1.23%
NASDAQ 4,452.7920 +69.9450 1.60%

Brokerage Partners

Rates from Bankrate.com

  • 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