This Day On The Street
Continue to site
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 Spike on Greek Rescue Plan

NEW YORK ( TheStreet ) -- Gold prices settled higher Tuesday after approval of second bailout package for Greece propped up the euro.

Gold for April delivery closed up $32.60 at $1,758.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,759.50 and as low as $1,727 an ounce while the spot price was adding $22, according to Kitco's gold index.

Silver prices rose $1.21 to $34.429 an ounce while the U.S. dollar index was down 0.18% at $79.001.

"A big vote of confidence from the Base Metal market today as the complex finished up strongly, wiping out much of the loses from last week," said analysts from RBC Capital Markets. "The resolution on the Greece bailout package helped bring in some short covering and fresh longs from the fund community."

RBC believes the economic picture, particularly in developed countries, is improving. As a result, the analysts believe risk appetites among metals investors should increase.

Jon Nadler, senior metals analyst at Kitco Metals, noted that market action has hinged on Greek headlines for weeks, with equities and the euro rising on positive news and falling after missed deadlines. With the deal now in place, Nadler believes investors can return their focus to the bigger -- and more problematic -- picture.

"Now that the red wax seal is drying on the 130 billion euro package and the many strings that are attached to it, the markets can focus on the remaining troublesome items -- banking sector problems and Greece's own inability to avoid coming back to knock on the EU's door for more assistance, at a later date," said Nadler. "There appears to be little doubt that in order for the country to bring debt down to 120% of GDP such further help will be necessary. As things stand right now, if Greece is lucky, that ratio might get down to 129% by -- 2020 or so."

Gold prices were also getting a boost from China's decision to lower its reserve requirements for banks. The People's Bank of China announced over the weekend that it was knocking down it's reserve-requirement ratio by 0.5%, a move aimed at boost lending. Some are interpreting this as a sign that China's economy could be slowing.

Gold mining stocks were riding gold prices higher Tuesday. Kinross Gold (KGC - Get Report) was gaining 3.7% at $11.36 while Randgold Resources (GOLD - Get Report) was 1.1% higher at $112.34.

Other gold stocks, Agnico-Eagle (AEM - Get Report) and Eldorado Gold (EGO - Get Report) were trading higher at $36.45 and $14.39, respectively.

-- Written by Ross Tucker in New York.

>To contact the writer of this article, click here: Ross Tucker.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AEM $46.76 -0.95%
EGO $4.17 -0.95%
GOLD $99.68 -0.82%
KGC $5.64 -1.05%
AAPL $93.64 -0.11%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs