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!

Gold Prices Flat as Consolidation Continues

Stocks in this article: GOLD KGC AUY GFI GLD

NEW YORK ( TheStreet) -- Gold prices were trading near the flat line Monday as the yellow metal continued to consolidate after a monster rise from the Federal Reserve's announcement of quantitative easing.

Gold for December delivery was up $1.50 to $1,774.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,778.90 and as low as $1,769.50 an ounce, while the spot price was up $1.20, according to Kitco's gold index.

"There was a major reaction ... to the Fed, so gold has already rallied up a lot, and even Friday it went up but it wasn't that crazy," said Yu-Dee Chang, chief trader at Ace Investment Strategists. "We are thinking short-term wise it could go up a bit more but we believe it may consolidate or even pull back a little bit."

Silver prices for December delivery were losing about 8 cents to $34.58 an ounce, while the U.S. dollar index was gaining 0.05% to $78.87.

The gold price saw one of its largest intraday gains last Thursday after the Fed unveiled an open-ended asset-purchase program as part of aggressive monetary stimulus meant to fuel the sluggish jobs market.

Chang said that he believed upper resistance on gold would be at about $1,800 an ounce, and added that he had a 12-month projection of $2,300 an ounce.

Chang said he thinks $2,300 is possible because based on inflation-adjusted numbers the yellow metal has only returned to a 1980 high.

Monday marked the second consecutive trading day that gold failed to make a meaningful move to the positive, as Thursday's $38.40 spike seemed to immediately price in the short-term effects of QE3.

Gold will continue to eye the eurozone as finance ministers continue to discuss the merits and disadvantages to bailout measures for countries like Spain. Though many analysts see some form of monetary easing in the near future, it remains a tepid discussion without a definitive time table.

Meaningful action in Europe could offer the next big gap up for the precious metal.

Gold mining stocks were mostly lower on Monday. Shares of Randgold Resources (GOLD) were gaining 1.1%, while Kinross Gold (KGC) was shedding 1.1%.

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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