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 and Silver Prices Claw Higher

Stocks in this article: KGC GG AEM EGO

NEW YORK ( TheStreet ) -- Gold and silver prices regained momentum Wednesday on strong physical buying as investors took advantage of recent selloffs.

Gold for June for delivery added $2 to settle at $1,455.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has climbed to $1,463.70 while the spot gold price was adding $2.90, according to Kitco's gold index.

Silver prices rose 17 cents to close at $40.23 an ounce.

Gold prices had fallen 1.3% this week as broad selling struck the commodities sector, but the metal was rebounding Wednesday as investors stepped in to buy gold on a "discount."

"Whenever we see a little selloff in the gold market, what's historically followed is some physical buying which has propped up the price," says Will Rhind, head of U.S. operations for ETF Securities. Rhind still thinks gold prices could hit $1,500 but that investors will have to be patient.

"I like the range between $1,400 - $1,450," says Mihir Dange, trader at Arbitrage, but that on the upper end gold could trade around $1,460 an ounce. "There seems to be a lot of strife around the world, inflation concerns and gold still can't seem to rally ... so right now I would trade a little neutral to bearish."

Dange doesn't think that $1,500 is off the table but that gold should have already broken that level on recent catalysts. According to the latest commitment of traders report, speculative longs in gold increased by 17,449, or 7.2%, from the last week in March to the first week in April, while short contracts grew 5,864, or 11%, pointing towards this more cautious trading outlook.

The U.S. dollar index was slightly lower Wednesday but then climbed higher after President Obama's budget speech outlined $4 trillion in cuts over 12 years. Gold kept rising tentatively after the Federal Reserve released its beige book report that indicated the economy was improving across the country but there were no game changers in the report for low interest rates. Gold will also look to Friday's inflation readings out of the U.S. and China for direction.

The Federal Reserve is expected to keep rates low but China could take more steps to tighten money supply, making Friday's inflation reading key to policy initiatives. The Chinese state run newspaper reported Wednesday that China will "earnestly implement its 'prudent' monetary policy" ranging from rate hikes to higher reserve requirements.

1 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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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