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 Jumps After Fed Minutes (Update 1)

NEW YORK ( TheStreet) -- Gold prices jumped Wednesday afternoon after the minutes of the Federal Reserve's latest policy meeting showed growing willingness to provide more monetary accommodation.

"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.

Gold for December delivery was gaining $9.90 to $1,652.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,649.70 and as low as $1,636.30 an ounce, while the spot price was up $6.70, according to Kitco's gold index.

Before the FOMC minutes on Wednesday, gold settled down $2.40 at $1,640.50 an ounce.

Silver prices for September delivery settled up 13 cents at $29.56 an ounce, while the U.S. dollar index was down 0.24% to $81.71.

"I think expectations of further monetary easing -- not only by the Fed but the European Central Bank and maybe some other central banks -- is underpinning gold at the moment, and I think a growing number of observers are anticipating possible easing by the Fed this autumn," said Jeffrey Nichols, senior economic adviser at Rosland Capital, ahead of the release of the Fed minutes.

Traders are also keeping their sights on the action in oil as uncertainty of supply can serve to prop gold up as a safe haven. Nichols also said there is concern in the gold markets about unrest among mining workers in South Africa.

Though the upheaval near a Lonmin mine in the country caused a spike in platinum prices last week, Nichols thinks possible sympathy walkouts among other miners who work in the country's gold mines could have an impact on the international gold trade.

Physical demand in India and China has remained soft through the summer. The ruppee price of gold is at all-time highs, which has caused price sensitivity for the short run, according to Nichols.

China buying could jump soon for a few reasons: Signs from the country's July consumer price index report showed slowing inflation, which sparked chatter that China could put a fresh round of easing on the table; also, investors are anticipating the launch of Chinese gold ETFs on the Shanghai stock exchange, which would allow more individuals in the country to invest in the yellow metal.

Gold mining stocks were mostly higher Wednesday. Eldorado Gold (EGO - Get Report) was rising 1.6%, while NovaGold Resources (NG) was up 1.1%.

Among other mining stocks, Gold Fields (GFI - Get Report) was dipping about 1%, while Barrick Gold (ABX - Get Report) and Kinross Gold (KGC - Get Report) were up 0.3% and 0.71%, respectively.

-- 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
KGC $5.16 -4.70%
NG $5.94 -3.90%
ABX $17.52 -4.70%
EGO $3.74 -5.30%
GFI $4.24 -3.20%


Chart of I:DJI
DOW 17,659.34 -91.57 -0.52%
S&P 500 2,048.00 -15.37 -0.74%
NASDAQ 4,718.88 -44.3440 -0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs