This Day On The Street
Continue to site
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

Gold, Silver Surge on Inflation Data

NEW YORK ( TheStreet ) -- Gold prices and silver futures were popping Friday as investors opted for the metals amid a weak dollar and strong inflation numbers out of Europe.

Gold for June delivery exploded $25.20 to settle at $1,556.40 an ounce on the Comex division of the New York Mercantile Exchange. The spot gold prices was rising $25.50 an ounce, according to Kitco's gold index.

Silver prices for July moved $1.05 higher to settle at $48.59 an ounce.

"Don't be surprised if the silver spot price reaches at least $60 by the end of May," said Patrick A. Heller, owner of Liberty Coin Service and Premier Coins & Collectibles in Lansing, Mich. "Also don't be shocked if it becomes almost impossible to acquire physical silver for immediate or short-term delivery."

Gold and silver futures extended Thursday's gains, as European inflation accelerated to 2.8% in April, which was much higher than the 2% European Central Bank target. European inflation rose at its fastest clip in two and a half year amid soaring energy prices.

Since Wednesday, the dollar has been weakening and gold and silver have been gaining, thanks to the unanimous decision by the Fed to keep interest rates at 0% to 0.25% until at least the Fall as well as keeping its balance sheet the same size after quantitative easing ends in June meant more cheap money for longer.

The Fed will reinvest its profits from its current $600 billion bond buying program back into the market not adding extra cash but not taking any away either. Inflation forecasts were also below the Fed's 2% target, which means the central bank would want more inflation. Some experts are calling this QE 2.5 and say that this leaves the door open to a third round of quantitative easing, or QE3.

"You'd almost think Ben Bernanke wants Americans to dump the dollar and switch into precious metals," said Adrian Ash, head of research at

Gold mining stocks, a risky but potentially profitable way to buy gold, were trading mixed Friday morning. Kinross Gold (KGC - Get Report) gained 0.9% to close at $15.84.

Goldcorp (GG - Get Report) rose 1.4% to $55.83, while Agnico-Eagle (AEM - Get Report) was up 2.9% to $69.56 and Eldorado Gold (EGO - Get Report) rose 4.3% to finish at $18.68.
More on Gold
Gold Price News
How to Invest in Gold

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to:


Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEM $26.69 -0.04%
EGO $3.09 0.00%
GG $11.75 -0.84%
KGC $1.93 0.00%
AAPL $118.03 -0.71%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs