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 Stall Ahead of Thanksgiving

Stocks in this article: GLDAUYKGCAEMEGO

NEW YORK ( TheStreet ) -- Gold prices drifted lower Wednesday as a stronger dollar weighed on prices and as traders took profits headed ahead of the Thanksgiving holiday.

Gold for December delivery shed $6.50 at $1,695.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,710.80 and as low as $1,677.10 an ounce while the spot price was down $11, according to Kitco's gold index.

Silver prices lost $1.06 at $31.88 an ounce while the U.S. dollar index was up 1.21% at $79.18.

Gold prices have had a volatile week -- down 2.7% Monday then up 1.4% Tuesday -- and traders took profits Wednesday after options expiration. George Gero, senior vice president at RBC Capital Markets, noted that options expiration was somewhat constructive for gold.

"Most of the December contract sales went to February, April and June contracts," he said, "there was less than expected open interest loss," which means that traders still wanted to be long gold. Ross Norman, CEO of SharpsPixley, says that speculative traders might be rebuilding their long positions after the big shake out in September when gold plummeted 10% in a few days.



With volume light over the next few days "the complex remains vulnerable to bouts of long liquidation/cash generation," said James Moore, research analyst at FastMartkets.com. But the SPDR Gold Shares (GLD) added 6 tons Tuesday, which points to strong buying after a selloff. Moore said this suggests gold will remain cushioned and prices will push back to $1,800 an ounce.

Bouts of liquidation were triggered by deflationary fears as Chinese manufacturing activity slowed in November to the lowest level in 32 months and as eurozone manufacturing remains in contraction territory. Attempts to address the debt problem in Europe haven't been enough, sparking weakness in the euro, boosting the dollar and providing a headwind for gold.

With borrowing costs rising for France and Spain, the International Monetary Fund stepped in on Tuesday with plans to make loans available for creditworthy countries -- offering up to five to 10 times the amount the country in question contributes to the IMF for up to two years.

Tony Crescenzi, strategist and portfolio manager at PIMCO, said the program targets smaller countries "and therefore is unlikely to lead to much in the way of new bank reserves in the global system."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • 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