This Day On The Street
Continue to site
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 Stays Low As Hope Fades For Fiscal Cliff Resolution

Gold Stays Low as Hope Fades for Fiscal Cliff ResolutionGold remained stuck in the doldrums on Thursday, staying near four-month lows of around US$1,660 an ounce. 

With little news to move the gold price amid thin holiday trading, spot gold finished at an even $1,663, up $3.60 from Boxing Day. Gold futures also increased marginally, with the February gold contract last trading up $3.40 an ounce , at $1,664.10.

The precious metal was lifted slightly by short covering and bargain hunting, even reaching $1,666 at one point during the day, but those gains were limited by the US Labor Department's news that applications for unemployment benefits fell to one of the lowest levels of the year. The US dollar gained as a result, putting pressure on gold.

Gold investors and traders are also increasingly leery of stalled negotiations over the US "fiscal cliff" deadline, with many preferring to sit on the sidelines and wait and see. Lawmakers in Washington have until January 1 to come up with a deal that will avoid $600 billion in tax increases and spending cuts slated to kick in come the new year. Economists predict that the measures will push the country into a recession.

Senate Majority Leader Harry Reid on Thursday did not inspire any hope of a resolution, and was quoted by The Independent as saying it "looks like" the US is heading over the fiscal cliff.

Company news

Randgold Resources (NASDAQ: GOLD) announced that production at its Tongon gold mine in Cote d'Ivoire was impacted due to a mill fire. The incident occurred on December 24 during a planned shutdown. "The fire has been fully extinguished and no injuries have been reported but both cyclone clusters, flotation cells and blowers along with associated infrastructure for both milling circuits suffered damage," Randgold said in a statement. The company's stock suffered a 0.54-percent decline on Thursday.

Al Jazeera reported that 4,000 miners suffering from lung disease have launched South Africa's largest-ever class-action lawsuit against AngloGold Ashanti (NYSE:AU), Goldfields (NYSE:GFI) and Harmony Gold Mining (NYSE:HMY). The plaintiffs claim to have contracted severe lung ailments such as tuberculosis and silicosis while working in underground gold mines and are demanding millions of dollars in compensation from the defendants, which are some of the world's biggest mining companies.

1 of 3

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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs