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 as Eurozone Hesitates (Update 1)

Stocks in this article: KGC ABX AUY GG GLD IAU

Updated from 11:50 a.m. EST with settlement prices and analyst comments

NEW YORK ( TheStreet) -- Gold prices settled lower Tuesday as investors continued to await on more clarity from the eurozone about its debt crisis and troubles with Greece and Spain.

Gold for December delivery dipped $6.10 to $1,724.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,733.30 and as low as $1,717.60 an ounce, while the spot price was rising $1.70, according to Kitco's gold index.

"There's a lot of belief that once the European Union passes its new budget -- they had an OK auction -- and there's a lot of belief that those funds are going to become available for Greece," said Phil Streible, senior commodities broker at RJO Futures. "Once they become available you're going to see more of a risk-on type mentality."

Silver prices for December delivery were gaining 19 cents to $32.72 an ounce, while the U.S. dollar index was off 0.01% at $81.06.

The Greek parliament passed an austerity budget on Sunday for 2013, but European finance ministers on Monday didn't authorize fresh emergency loans to Greece. The eurozone leaders did reiterate confidence that the necessary avenues were in order to reduce the country's debt.

"This really indicates a really strong resolve by the Greek authorities to actually deliver and implement on a very ambitious and important program, both from the growth perspective and from the perspective of debt sustainability," IMF Managing Director Christine Lagarde said at talks in Brussels.

Spain also continued to refrain from bailout requests for its banks from the European Central Bank. The stimulus measures would be an appealing inflation play for gold prices.

The United States budgetary uncertainty that must be addressed by the end of the year also is being followed closely by traders as it remains to be determined whether lawmakers will reach a resolution or go over the so-called fiscal cliff -- the across-the-board deep spending cuts and expiration of Bush tax cuts.

Analysts have said a prolonged debate over the fiscal cliff could cause the gold trade to be volatile, but also make the yellow metal an appealing safe haven.

"My advice to traders, really, is basically you want to be out of gold positions now and kind of on the sideline until you see $1,730 an ounce across on the upside, otherwise you're best to wait," said David Banister, chief investment strategist at

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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