This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Eurozone Doubts Nudge Gold Higher (Final)

Stocks in this article: AEM KGC GG EGO

Updated from 3:17 p.m. with with final spot price and closing prices of various gold stocks

NEW YORK ( TheStreet) -- Gold prices rose Wednesday as the yellow metal's safe-haven appeal continued to grow ahead of the upcoming general elections in Greece this weekend.

Gold for August delivery settled up $5.60 at $1,619.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,626 and as low as $1,607 an ounce during the session, while the spot price closed up $7.80, according to

"Spain has been dominating the news, the fact that Spanish officials have asked for a larger number I think signifies they realize that there's a lot at stake," said James Moore, an analyst at "You've also got, obviously, the Greek elections going on in the background."

Silver prices were down less than one cent at $28.94 an ounce while the U.S. dollar index was 0.17% lower at $82.24.

Moore said he feels gold prices are unlikely to clear $1,640 until after the Greek elections, projecting a range of $1,570 to $1,640 ahead of the weekend.

Jeffrey Wright, managing director of metals and mining at Global Hunter Securities, said the continued deterioration of the euro could weaken the correlation of the currency and the U.S. dollar to gold.

"As the euro continues to weaken -- I think it will -- you're going to see not the same impact to gold prices as we've seen in 2011 and 2012, so far," Wright said. "That correlation will diminish over time, and the relationship that is probably a little more important moving forward is the relationship of the U.S., Canada, Australia and China in relation to gold."

Another factor is next week's Federal Reserve policy meeting. Market expectations have increased that the central bank may signal its willingness to embark on another round of quantitative easing or possibly even announce a short-term extension of Operation Twist, its current bond-buying program, which expires this month.

The recent softening in U.S. economic data -- especially the weak May jobs report -- has fed into this argument. On Wednesday, the Commerce Department said retail sales fell by 0.2% in May. Excluding autos, sales fell 0.4%. More quantitative easing is generally seen as a positive for gold prices.

"Gold is sort of being a little diffident here, waiting for some sort of action in Europe and then also some resolution on this fiscal cliff issue," said Sonny Tahiliani, managing director of precious metals at MacroMoves Capital Advisors. "I wouldn't expect gold to do anything dramatic either way until we see some movement on either of these."

1 of 2

Select the service that is right for you!

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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • 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