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 Higher Following Japan Tragedy

Stocks in this article: AUY

NEW YORK ( TheStreet ) -- Gold prices rose tentatively higher Monday as gold's tug-of-war took center stage. Safe haven buyers bought the metal as protection against escalating devastation in Japan but profit takers sold gold to cover losses in other assets.

Gold for April delivery added $3.10 to settle at $1,424.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,433.50 and as low as $1,418.20. The spot gold price was rising more than $6, according to Kitco's gold index.

Silver prices settled down 9 cents to $35.84 an ounce.

Gold prices struggled to gain upward momentum as profit taking weighed on the metal. Gold was 1% higher in early trading, then sold off to session lows, and has since rebounded, higher even still in post-market trading. Primarily gold is seeing selling from Japanese investors as they raise cash to deal with the aftermath of Friday's earthquake and tsunami.

Phil Streible, senior market strategist at Lind-Waldock, says that Japanese investors tend to buy assets that they can get a better return on versus the yen which returns 0%. A favorite trade is short yen, long gold, for example, says Streible, and now they are "selling their gold and their silver to try and raise back capital ... but that will reverse at some point."

Strieble believes gold is "definitely going to make new contract highs again."

The death toll in Japan is expected to top 10,000 and the country reported another explosion at one of its nuclear plants, its second since Saturday.

The Bank of Japan has also pumped money into the system to keep the economy going.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

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