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 Trade Sideways

"If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of agency mortgage-backed securities, undertake additional asset purchases, and employ its other policy tools as appropriate until such improvement is achieved in a context of price stability," the Federal Open Markets Committee said Thursday.

Gold prices surged Thursday as the value of dollars started to sink, because a flood a new cash expected to enter the economy from the monetary system would theoretically make the U.S. currency cheaper, thus making the value of gold -- a commodity that can't increase its supply at will -- more appealing to investors.

Another argument is that the Fed's easing policies for the past four years could lead, in the longer term, to inflation pressures. The fear of rising inflation also bolsters gold prices to the upside.

Though the Fed dominated gold investors' minds for most of the past two weeks, eurozone troubles and the region's developing bond-buying program have also supported a rise in gold prices. Recent easing from Brazil and a massive infrastructure stimulus plan announced by China are two more examples of worldwide actions that are driving gold to its highest levels in a year.

Gold mining stocks were mostly higher Friday. Shares of Randgold Resources (GOLD - Get Report) were jumping 6.1%, while NovaGold Resources (NG) was gaining 4.6%.

Among other mining stocks, Kinross Gold (KGC - Get Report) was up 3.8%, while Barrick Gold (ABX - Get Report) was gaining 2.4%.

Gold ETF SPDR Gold Trust (GLD) was up 0.46% on volume of 3 million.

-- Written by Joe Deaux in New York.

>Contact by Email.

2 of 2

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
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!
SYM TRADE IT LAST %CHG
ABX $12.76 0.00%
GOLD $74.65 0.00%
GLD $115.60 0.00%
KGC $2.28 0.00%
NG $3.67 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs