Gold for April delivery closed up $5.80 to $1,340.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price today has traded as high as $1,344.10 and as low as $1,326. The spot gold price was up $4.50, according to Kitco's gold index.
Gold prices had been trading higher earlier in the session but were knocked back after the U.S. reported stronger-than-expected manufacturing activity for December, indicating that the recovery is gaining steam. The Dow Jones Industrial Average was up triple digits as investors led a charge into stocks despite continued unrest in Egypt.
Gold prices managed to rally into the close as "lots of put buyers and call sellers and buyers were looking to protect positions today on the Comex," said George Gero, senior vice president at RBC Capital Markets.The U.S. dollar index was sliding 0.88% to $77.05 while the euro was up 0.92% to $1.38 versus the dollar. All currencies were beating back the dollar Tuesday, which was helping gold find some support. For a newbie gold investor, January's selloff can look dramatic. Gold rallied 26% in 2010 to then lose more than $100 from its record high. The SPDR Gold Shares (GLD) dropped 53 tons as tactical investors dumped gold. However, short interest on the stock is 4.7%, signaling that perhaps investor sentiment is turning. ETF Securities also reported that its new gold backed ETF, ETFS Physical Asian Gold (SGOL), saw an inflow of 5,000 ounces Monday. Since launching on January 14th, about 40,000 ounces have been accumulated. Traders are still on the fence as to how to play the gold market. "I am going to look at the low from last Thursday, which is $1,308, and Monday's low of $1,322," says Scott Redler, chief strategic officer for T3Live.com, to determine when to start buying the GLD again. If the political unrest in Egypt spreads, Redler thinks gold prices could make another leg higher feeding off of the chaos.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV