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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Gold Prices Jump on Overseas Stimulus Hopes

NEW YORK ( TheStreet) -- Gold prices were gaining Thursday as optimism for stimulus from Europe and Asia grew on fresh reports.

Gold for December delivery was adding $13.50 to $1,715.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,718.90 and as low as $1,702.30 an ounce, while the spot price jumped $11.30, according to Kitco's gold index.

The Bank of Japan could be eying a new round of asset purchases amid data that has shown weakening Japanese exports and expectations that the central bank may have to cut growth forecasts, Reuters reported.

Investors also gained more clarity for the possibility of a Spanish bailout request after Prime Minister Mariano Rajoy's political party grabbed victory in Galicia. The win bolstered Rajoy's power to persuade Spanish officials of the need to request assistance from the European Central Bank.

Though gold settled lower on Wednesday, prices began to rise late Wednesday after the Federal Reserve reaffirmed its commitment to keep interest rates exceptionally low at least through 2015. The bank also reiterated its commitment to an open-ended term of $40 billion in monthly purchases of mortgage-backed securities.

The guidance remained positive for gold in the near- to long-term as the yellow metal serves as a hedge against inflationary policies. The Fed, though, has stated that it remains confident that its current easing programs would not significantly boost concerns of inflation.

Jon Nadler, a senior analyst for Kitco Metals, warned that funds that had loaded up on gold ahead of the Fed's quantitative easing announcement in September, are likely to sell in order to show profits to their investors.

"Bear in mind that the funds which had loaded up on a bunch of gold ahead of QE3 will now switch into year-end window-dressing mode as they need to show 'something' to their investors," Nadler wrote in a note.

Silver prices for December delivery was gaining 43 cents to $32.05 an ounce, while the U.S. dollar index was increasing 0.03% to $79.98.

Gold mining stocks were mostly higher on Thursday. Shares of Agnico-Eagle Mines (AEM - Get Report) were climbing 6.8%, while shares of Goldcorp (GG - Get Report) were rising 5%.

1 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
ABX $13.02 0.00%
AEM $32.15 0.00%
GLD $116.16 0.00%
GG $21.98 0.00%
KGC $2.84 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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