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 Slide Following 4% Rally

Stocks in this article: NGGGKGCAUYAEMEGO

NEW YORK ( TheStreet ) -- Gold prices were headed lower Monday as investors took profits after gold rallied almost 4% last week.

Gold for February delivery was down $9.20 at $1,742.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,758.80 and as low as $1,732.20 an ounce while the spot price was down $6, according to Kitco's gold index.

Silver prices were adding 17 cents at $32.86 an ounce while the U.S. dollar index was down 0.56% at $78.24.

Gold was also decoupling from the stock market -- the two have been moving in tandem of late. Any sell off in stocks can prompt gold selling as investors need to raise cash. On the flip side, if markets head higher and traders still need cash they might be more apt to sell gold then a stock up 10%.



There was steady buying from Asia overnight and Western traders took advantage of the price move to lock in gains and are tentative to bet big on gold.

The latest commitment of traders report for the week ended November 29th showed that total long positions decreased by 28,000 contracts and short positions sunk 21,000 contracts. This means that part of gold's recent rally was short covering, which was then countered by investors exiting out of some of their long exposure.

"Speculative financial investors are still showing reticence," wrote CommerzBank. Still, gold prices this week will still be shaped by the sovereign debt crisis in Europe said CommerzBank.

There are many reports swirling about major financial initiatives to help stabilize Europe. European central banks, through the European Central Bank, could lend up to 200 billion euros to the International Monetary Fund, which could then lend that money back to weaker European governments. The Federal Reserve could also be prepping to lend more money to the International Monetary Fund along with the ECB. The ECB could also be lining up 1 trillion eruos to buy sovereign bonds if deeper fiscal consolidation among the 17 nations on the euro is agreed upon.

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 16,618.31 +3.50 0.02%
S&P 500 1,944.86 +3.58 0.18%
NASDAQ 4,425.6330 +6.1550 0.14%

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