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, Silver Prices Claw Higher

NEW YORK ( TheStreet ) -- Gold and silver prices rallied Monday on safe haven buying as the U.S. dollar index gave up gains.

Gold for August delivery added $2.90 to close at $1,542 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,548.20 and as low as $1,533.60, while the spot gold price was adding $1.20, according to Kitco's gold index.

Silver prices rose 32 cents to close at $36.07 an ounce. The U.S. dollar index was flat at $75.01, as the euro was slightly lower.

With no resolution to Greece's debt crisis, investors were buying gold and silver as protection against a worldwide, double-dip recession. Both metals were weaker in early-morning trading as a stronger dollar weighed on prices, but gold and silver quickly rallied as panicked investors needed some place to put their cash. U.S. stocks were higher but still bouncing around some risky key support areas.

European Union finance ministers were unable to come to an agreement on another bailout package for Greece as well its next chunk of money from its first bailout. Officials were reportedly waiting for a €28 billion austerity bill to pass the Greek Parliament. The measure has been causing protests and strikes in Athens. Prime Minister George Papandreou now must fight for his political life at a confidence vote late Tuesday.

Gold and silver's safe haven status isn't a sure thing, however, as uncertainty in Greece pushes the dollar higher vs. the euro, a headwind for all dollar-priced commodities. Gold and silver "remain more vulnerable to downside pressure in the short term with the lack of clear agreement of financial aid to Greece increasing the likelihood of a broad rout of risk appetite, which would drag gold initially lower," says James Moore, research analyst at FastMarkets.

Moore does point to the 9-ton increase in the SPDR Gold Shares (GLD) Friday as reason to believe that safe-haven buying will support prices for the long term.

Gold and silver prices also will have to contend with the Federal Reserve's two-day FOMC meeting, which ends Wednesday. Although no change in the interest rate is expected, gold will be reacting to how the Fed will exit its current $600 billion bond buying program, which is scheduled to end this month, and how it will deal with slow growth vs. rising inflation.

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!
SYM TRADE IT LAST %CHG
AEM $29.18 0.14%
AUY $3.89 0.31%
EGO $4.94 -0.20%
GS $187.54 0.16%
KGC $2.42 2.30%

Markets

DOW 17,692.78 +14.55 0.08%
S&P 500 2,058.30 +2.15 0.10%
NASDAQ 4,877.2450 +13.8830 0.29%

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