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 Surge as Investors Eye U.S. Election

NEW YORK (TheStreet) -- Gold prices were surging Tuesday as Americans lined up to cast deciding votes for the presidential election between Barack Obama and Mitt Romney.

Gold for December delivery spiked around noon by $33 to $1,716.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,718.40 and as low as $1,683.50 an ounce, while the spot price was jumping $31.90, according to Kitco's gold index.

"If it's just gapped up then maybe people are thinking that Mr. Obama may win it," said Tim Harvey, senior vice president at ETF Securities U.S. "Maybe investors had been too aggressive in the selloff, and ... if Obama is reelected then we would expect more quantitative easing, Mr. [Ben] Bernanke would have the option of keeping his job as long as he wants it."

Romney previously has said he would remove Bernanke as the Federal Reserve chairman if he was elected president. Gold analysts have said removal of Bernanke would leave in doubt the Fed's open-ended, mortgage-backed security purchasing program that the central bank has used to promote monetary stimulus.

Gold prices plummeted more than $40 an ounce on Friday as investors jumped to the sidelines. Monday brought more buying and a slight bump in the price of the yellow metal, but Tuesday's action reversed the losses from last week.

Silver prices for December delivery was adding $1.04 to $32.17 an ounce, while the U.S. dollar index was off 0.11% to $80.62.

"We had a fairly steep selloff last week which really didn't make a lot of sense to me; I definitely think part of it is value buying in the gold space because we had a number of down days followed by some short-covering," said Jeffrey Wright, managing director of metals and mining at Global Hunter Securities.

Another reason gold prices could be poised for an uptick is that physical buying could be on the horizon in India during the holidays of the Hindu calendar, according to Jon Nadler, senior analyst at Kitco Metals, in a morning note.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Brokerage Partners

Rates from Bankrate.com

  • 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