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

Gold Prices Climb on Comments From ECB's Draghi (Update 1)

Updated from 1:17 p.m. EST with settlement prices

NEW YORK ( TheStreet) -- Gold prices ticked higher Thursday after European Central Bank President Mario Draghi said consistent accommodative monetary policy would be necessary for a gradual economic pickup in the eurozone next year.

Gold for February delivery gained $8 to settle at $1,701.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,704.80 and as low as $1,687.10 an ounce, while the spot price was adding $5, according to Kitco's gold index.

"Mario Draghi's speech helped the gold a little bit today, and I don't think anyone's mentioned that," said George Gero, precious metals strategist at RBC Wealth Management. "What's happening now is you're going to see some short covering for tomorrow morning, and if we close at $1,710 an ounce or above on Friday I think you're going to see a lot more short covering."

The Bureau of Labor Statistics prints its November monthly jobs report Friday at 8:30 a.m. EST and economists polled by Thomson Reuters are expecting nonfarm payrolls to increase by 93,000. Expectations are lower as analysts have suggested Hurricane Sandy's devastation could have a significant impact on hiring.

Gold prices have typically worked contrary to the monthly jobs report -- when the economy adds more jobs than expected, gold prices dip; whereas, gold climbs on poor labor statistics.

Gold, in some cases, simply acts as a safe-haven for investors against a struggling economy, but investors leave the yellow metal for other securities when things look good.

Silver prices for March delivery rose 16 cents to close at $33.11 an ounce, while the U.S. dollar index was spiking 0.60% to $80.30.

Draghi spoke Thursday morning and said that the eurozone continues to face downside risks from a struggling economy on the continent. He added that economic activity in the region could pick up next year as global demand increases and confidence returns to financial markets.

Gold mining stocks were mixed Thursday. Shares of Goldcorp (GG - Get Report) were dipping 0.6%, but shares of Royal Gold (RGLD - Get Report) were increasing 1.8%.

Among volume leaders, shares of Barrick Gold (ABX - Get Report) were down 0.21%, while Yamana Gold (AUY) was tacking on 0.68%.

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
Only $9.95
14-Days Free
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!
IAU $11.65 1.70%
GLD $115.62 1.70%
ABX $12.02 9.70%
GG $19.01 4.90%
RGLD $66.60 5.50%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs