This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Gold Prices Inch Higher After Labor Report (Update 1)

Stocks in this article: GGAEMKGCGLDIAUABX

Updated from 11:21 a.m. EST with settlement prices

NEW YORK ( TheStreet) -- Gold prices inched higher Friday after U.S labor data surprised economists with a much better-than-expected boost in employment.

Gold for February delivery added $3.70 to $1,705.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,706.80 and as low as $1,684.10 an ounce, while the spot price was increasing $2.60, according to Kitco's gold index.

The Bureau of Labor Statistics announced Friday that total nonfarm private payrolls jumped 146,000 in November as the unemployment rate edged down to 7.7% from October's 7.9%. Consensus among economists polled by Thomson Reuters expected 93,000 new jobs with the unemployment rate unchanged.

"So there's the question among investors : Well, if things are so good, why do we need quantitative easing anymore?" said Jeffrey Sica, president of Sica Wealth Management. "If the unemployment rate is under 8% ... there's that consideration that if things are good why would we need this?"

Sica, though, said that he believed gold prices would stabilize and that the long-term outlook for the yellow metal has never looked better, in part because it doesn't appear the Federal Reserve will end its open, ended, mortgage-backed security purchases anytime soon. The policy is seen as inflationary, which makes gold a safe-haven hedge.

Silver prices for March delivery were shedding 3 cents to $33.08 an ounce, while the U.S. dollar index was climbing 0.20% to $80.41.

Gold prices have experienced a bit of volatility during the past two weeks as institutional investors sold off large holdings of the precious metal for final notice at the end of November as it dipped below $1,700 an ounce -- a level seen by many traders as a sell stop order to limit their losses.

Europe remained relatively quiet Friday. After European finance ministers and the European Central Bank managed to reach a deal with Greek bailouts, and Spain requested relief funds for its banks, confidence has slowly started to creep back into the region.

"The Europe issue is kind of off the plate right now," said Randy Frederick, managing director of active trading at Charles Schwab. "I don't think investors are even thinking about Europe right now until the fiscal cliff issue is resolved, and truth is, really, things have stabilized in Europe."

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!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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