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 Edges Up Ahead of Fed Meeting (Update 1)

Updated from 10:01 a.m. EDT with settlement prices

NEW YORK ( TheStreet) -- Gold prices edged up Monday as traders engaged in light buying ahead of the Federal Reserve's two-day meeting this week.

Gold for August delivery rose $1.70 to settle at $1619.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1625.80 and as low as $1613.10 an ounce, while the spot price was up 30 cents, according to Kitco's gold index.

"It's driven by anticipation of stimulus," said George Gero, precious metals strategist at RBC Wealth Management. "Traders are going to step back and see which way the wind blows."

Silver prices for September delivery rose about 54 cents to $28.03 an ounce, while the U.S. dollar index was climbing 0.25% to $82.82.

Gold jumped some 2.5% last week following media reports that sentiment had increased among Fed members for additional quantitative easing in light of stagnant economic conditions. The pledge of European Central Bank President Mario Draghi to do "whatever it takes" to keep the single-currency bloc intact also helped.

This week is packed with market-moving events that could shove gold decidedly in one direction. In addition to the Fed meeting, there is a first notice day, when traders have to make or take gold delivery; the European manufacturing index; an ECB monetary policy announcement and U.S. monthly labor data. Hanging in the wings, according to Gero, is the possibility of more easing from China as well.

On Monday, however, summer doldrums and dollar fluctuation kept gains in check on Monday.

Gold mining stocks were mostly higher Monday. Eldorado Gold (EGO - Get Report) was at $11.38, up 36 cents, or 3.3%, while Randgold Resources (GOLD - Get Report) moved to $91.99, up 64 cents, or 0.7%.

Among other mining stocks, Agnico-Eagle Mines (AEM - Get Report) and Barrick Gold (ABX - Get Report) were up 2.7% and 2.1%, respectively. Newmont Mining (NEM - Get Report) was rising 1.5%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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 $45.64 -2.40%
ABX $18.39 -3.80%
EGO $3.93 -5.80%
GOLD $95.46 -4.20%
NEM $33.74 -1.70%


Chart of I:DJI
DOW 17,752.14 -139.02 -0.78%
S&P 500 2,065.06 -16.37 -0.79%
NASDAQ 4,775.9440 -41.65 -0.86%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs