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 Fall on Greek Debt Drama

NEW YORK ( TheStreet ) -- Gold prices tracked the euro lower Wednesday as the market was jittery waiting for a Greece debt deal.

Gold for April delivery closed down $17.10 at $1,731.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,754.80 and as low as $1,729.10 an ounce while the spot price was shedding $14.80, according to Kitco's gold index.

Silver prices closed 49 cents lower at $33.70 an ounce while the U.S. dollar index was slightly higher at $78.58.

Gold investors were jittery with Greece still trying to secure its second bailout. Initially, gold and the euro were firmer as the feeling was a deal was imminent but then the euro and gold reversed directions on a Bloomberg report that the European Central Bank wouldn't help Greece reduce its debt load. The Greek government is still trying to push austerity measures through Parliament as well as negotiate a bond swap with private investors and the European Central Bank, which would leave the investors at a loss.



However, "the near-term outlook for gold looks positive," says James Steel, analyst at HSBC. Indeed, tonnage in the SPDR Gold Shares (GLD) remained constant at $1,277 tons, despite gold's two day 2% decline. Gold is also finding some support as Federal Reserve chairman, Ben Bernanke, reaffirmed his commitment, to what many interpret, as a weak dollar policy by keeping rates low until the end of 2014 despite improving economic data.

Bespoke put out a note Wednesday saying that the U.S. dollar index was in danger of breaking below key technical levels "and is in danger of breaking its six month uptrend." A substantial dollar pullback could add support to gold as the two mostly move inversely to each other.

David Banister, chief investment strategist at TheMarketTrendForecast.com, thinks that gold is entering the last and final stage of its bull market. "I believe that it is a 13 year cycle and we are in the fifth and final wave pattern up," he says, which could last for 12-18 months.

The moderating of physical demand from China and India he says is also an indication of the end of the bull market. China imported only 38 tons of gold in December down 62% from November and slowing growth there would further effect jewelry consumption.

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
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
GLD $113.91 -1.46%
ABX $11.71 -4.72%
AUY $3.62 -4.23%
GG $17.49 -4.58%
NEM $26.55 -1.70%

Markets

DOW 18,041.54 -190.48 -1.04%
S&P 500 2,104.20 -21.86 -1.03%
NASDAQ 5,032.7510 -56.6110 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs