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
TheStreet Open House

Gold, Silver Prices Shine as Safe Haven

NEW YORK ( TheStreet ) -- Gold and silver prices shined as safe haven assets Tuesday on a broad commodity rally and as European debt worries plagued investor sentiment.

Gold for June delivery added $7.90 to $1,523.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,529 and as low as $1,513.20. The spot gold price was up $7.50, according to Kitco's gold index.

Silver prices jumped $1.22 to $36.12 an ounce. The U.S. dollar index was shedding 0.38% to $75.85 which was helping the metals as they became cheaper to buy in other currencies.

European woes were front and center Tuesday. European countries have reportedly been preparing for a Greek default that would result in delayed repayments. Moody's is also threatening to downgrade the credit rating of some of the U.K.'s biggest banks.

Long term borrowing costs for Italy, Portugal, and Spain jumped Monday as investors were reluctant to lend money to the troubled countries. Portugal is in bailout mode, Italy received a credit downgrade, and Spain has a new ruling party that could derail its own austerity measures or uncover more debt problems.

Goldman Sachs also might have called a bottom in commodities after it revised its outlook upwards for oil. Although, its gold and silver price targets were unchanged at $1,690 and $28.20, respectively. Morgan Stanley increased its oil price forecast by 20%. The bullish sentiment helped drag all commodities higher.

A wild card for all commodities, however, is growth in China. Goldman slashed China's 2011 and 2012 growth forecast to 9.4% and 9.2%, respectively. If the country slows too much there won't be enough money to buy goods, from commodities the country actually consumes to gold, which is bought as a store of wealth. Goldman said China's inflation will fall to 4.7% in 2011, it is currently at 5.3%, and to 3% in 2012.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
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!
AEM $28.95 -0.65%
AUY $3.80 -2.10%
EGO $4.84 -2.20%
KGC $2.31 -2.10%
AAPL $124.16 -0.06%


DOW 17,685.36 +7.13 0.04%
S&P 500 2,057.33 +1.18 0.06%
NASDAQ 4,880.4720 +17.11 0.35%

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