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 Dip on GDP Surprise (Update 1)

Stocks in this article: EGO AEM ABX GG GLD

Updated from 11:07 a.m. EDT with settlement prices

NEW YORK ( TheStreet) -- Gold prices dipped slightly Friday as an upside surprise in third-quarter U.S. gross domestic product outweighed earlier short-covers on the yellow metal.

Gold for December delivery lost $1.10 to settle at $1,711.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,719.90 and as low as $1,701.40 an ounce, while the spot price was adding $2.10, according to Kitco's gold index.

"This has got to be some short-covering, and I'm a little surprised because the GDP number came out a little bit better than forecast," Phil Streible, senior commodities broker at RJO Futures, said in the morning. "I would have thought that gold and silver might have sold off on that type of news, because then you're going to have less chance of extended quantitative easing ."

But gold couldn't hold its slightly higher prices and sank into the close of the commodities exchange as a positive GDP report suggested a growing trend of improvement in the United States economy.

Silver prices for December delivery closed lower by 4 cents to $32.04 an ounce, while the U.S. dollar index was down 0.02% to $80.06.

Third-quarter GDP grew at a 2% clip, which was better than consensus expectations among economists who had looked for 1.9% growth. The higher-than-expected number suggested another indicator of a slowly improving economy.

Coupled with Thursday's improving weekly jobless claims report, the Federal Reserve's pledge to end its open-ended, mortgage-backed securities purchasing program has left investors wondering as to how long the central bank would continue its stimulus plan. The Fed said so-called QE3 would continue until the economy and labor market showed substantial and sustained improvement.

Selling continued after option expiration, said George Gero, precious metals strategist at RBC Wealth Management.

Gold mining stocks were mostly lower Friday. Shares of Eldorado Gold (EGO) were dropping about 2%, and shares of Agnico-Eagle Mines (AEM) were off 1.1%.

Among mining stocks trading in high volumes, Barrick Gold (ABX) was down 0.79%, while Kinross Gold (KGC) was losing 0.92%.

Gold ETF SPDR Gold Trust (GLD) was decreasing 0.05%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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