This Day On The Street
Continue to site
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

Gold Prices Bounce Back From 6 Month Low

NEW YORK ( TheStreet) -- Gold prices rose for the first time in ten days as buyers swooped in to take advantage of prices at six-month lows.

Gold for February delivery climbed $25.90 to settle at $1,565.80 an ounce at the Comex division of the New York Mercantile Exchange to clinch an eleventh straight year of gains. The gold price traded as high as $1,582.80 and as low as $1546.20 an ounce.

Silver prices for March delivery advanced 61.1 cents to $27.905 an ounce while the U.S. dollar index was falling 0.3% to $80.17.

Gold prices backtracked 4.6% in the prior seven days of trading and fell to their lowest level since July after a strengthening dollar and Chinese and Indian demand concerns sent investors fleeing into cash. Friday's rally was not enough to prevent the metal from completing its first quarterly decline in three years, having lost 3.4% in the last three months.

The metal rebounded this morning after this week's drop spurred speculation the lower price would renew buying interest in China and India after concern about demand in the world's two largest countries.

"All the fundamental reasons why people have been buying gold are still intact, so the lower prices could be attracting buyers who have been standing aside," Adrian Day, president of Adrian Day Asset Management, said. In particular, he explained, "Indians tend to be fairly price sensitive. It wouldn't surprise me if more Indian buyers are coming in now after scaling back the past few months."

Gains in gold and silver sent mining companies higher, with the raw materials sector leading gains in the S&P 500. Goldcorp (GG - Get Report) was rising 1.1% to $43.99. Barrick Gold (ABX - Get Report) was gaining 0.4%% at $45.35. Kinross Gold (KGC - Get Report) was increasing 0.5% to $11.39. Endeavour Silver (EXK - Get Report) was surging 1.3% to $9.74.



-- Written by Kaitlyn Kiernan in New York.

>To contact the writer of this article, click here: Kaitlyn Kiernan

To follow the writer on Twitter, go to @Kaitlyn_Kiernan.

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
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
SYM TRADE IT LAST %CHG
ABX $6.90 -0.79%
EXK $1.72 1.80%
GG $14.06 1.40%
KGC $1.76 -1.70%
AAPL $109.65 -2.80%

Markets

Chart of I:DJI
DOW 16,131.91 -396.12 -2.40%
S&P 500 1,919.34 -52.84 -2.68%
NASDAQ 4,653.3550 -123.1530 -2.58%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs