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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Gold Prices Spike on Greek Rescue Plan

Stocks in this article: KGCGOLDAEMEGO

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) was gaining 3.7% at $11.36 while Randgold Resources (GOLD) was 1.1% higher at $112.34.

Other gold stocks, Agnico-Eagle (AEM) and Eldorado Gold (EGO) 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 http://twitter.com/rosstucker.

>To submit a news tip, send an email to: tips@thestreet.com.

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!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

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