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 Settle Higher as the Dollar Dips

NEW YORK ( TheStreet ) -- Gold prices rose Thursday as investors shrugged off signs of a strengthening U.S. economy, focusing instead on a weaker dollar and continued uncertainty in Europe.

Gold for April delivery settled $15 higher at $1,786.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,789.50 and as low as $1,773.30 an ounce while the spot price was rising $3.30, according to Kitco's gold index.

Silver prices added $1.302 at $35.556 an ounce while the U.S. dollar index was down 0.52% at $78.813.

The Labor Department reported that the number of Americans filing unemployment claims for the first time in the week ended Feb. 18 was unchanged from the previous week's revised figure of 351,000, keeping levels near a four-year low. Economists surveyed by Thomson Reuters expected a rise to 354,000 from an originally reported four-year low of 348,000.

The Labor Department added that the four-week moving average fell 7,000 to 359,000 from the previous week's revised average of 366,000.

The report also noted that the number of people continuing to collect jobless benefits fell 52,000 in to 3.39 million in the week ended Feb. 11, from 3.44 million the preceding week.



"Some of this decline may be due to the expiration of benefits rather than previously displaced workers finding new jobs," noted Millan Mulraine, senior U.S. strategist, TD Securities. "Nevertheless, at these levels claims are consistent with the U.S. economy generating at a 200,000 plus pace and as such we expect employment growth in February to fall within this range, suggesting that the labor market is continuing to build on the positive momentum generated over the past two months."

In other domestic economic news, the Federal Housing Finance Agency reported that home prices rose 0.7% on a seasonally-adjusted basis in December, after increasing a revised 0.7% in November. Previously it was reported that prices rose 1% in November.

George Gero, senior vice president with RBC Wealth Management, believes current bullish sentiment behind gold could push prices to $1,800 by June. However, in the near term he expects investors to book some profits ahead of the weekend.

"Continued buying helped by jobs figures today and more buy stops as we are looking at $1,800 as the next possible move before profit taking ensues tomorrow," said Gero.

A research note from RBC Capital Markets said there were few catalysts to trigger movements in any direction. "At the moment, the market is looking for new information as our current state of affairs seems well priced in," said RBC analysts.

Gold mining stocks were trading higher Wednesday. Kinross Gold (KGC - Get Report) was falling 1.1% at $11.41 while Randgold Resources (GOLD - Get Report) was up 1.1% at $116.11 Agnico-Eagle (AEM - Get Report) was flat at $37.52 and Eldorado Gold (EGO - Get Report) was up 0.7% at $14.88.

-- 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.

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
AEM $21.28 -3.80%
EGO $3.33 -3.20%
GOLD $58.13 -3.70%
KGC $1.74 -4.70%
AAPL $118.49 -2.30%

Markets

Chart of I:DJI
DOW 17,505.06 -184.80 -1.04%
S&P 500 2,090.12 -13.72 -0.65%
NASDAQ 5,096.72 -31.5610 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs