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 Prices Dip Before Economic Reports (Update1)

(Updated from 11:15 a.m. ET with settlement and closing prices.)

NEW YORK ( TheStreet) -- Gold prices dipped Monday as investors of the yellow metal weighed strength in the broader U.S. economy.

Gold for February delivery lost $2.60 to settle at $1,646.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,663 and as low as $1,642.60 an ounce, while the spot price was off $9, according to Kitco's gold index.

"There are no meaningful economic reports today; tomorrow you've got Alcoa (AA) that kicks off earnings season, so that's potentially a little bit more meaningful in terms of investor sentiment," said Oliver Pursche, co-portfolio manager at GMG Defensive Beta Fund.

Pursche said traders may be looking ahead to Friday's report on import and export prices, which could give a better gauge on inflation.

The Federal Reserve announced last Thursday mixed sentiment among central bank members as to how much longer the central bank should continue its quantitative easing programs.

The news buried gold prices, which slipped 0.85% on Thursday and then plummeted 1.5% on Friday.

The decision to end monetary stimulus in 2013 -- which the Federal Open Market Committee's minutes said a few of its members believed should occur -- could be a result of the growing trend in positive economic reports, such as improving signs in the housing sector and manufacturing. Another reason could be the fear of inflationary pressures as a result of the massive stimulus the central bank has implemented since the 2008 financial crisis.

The labor market showed signs of more improvement on Friday as 155,000 jobs were added to nonfarm payrolls in December. The number was slightly better than the 150,000 a consensus of economists had expected. The unemployment rate -- which the Fed has marked as a target economic indicator for keeping rates near zero -- ticked up to 7.8% from November's originally reported 7.7% (the Bureau of Labor Statistics upwardly revised November's unemployment rate to 7.8%).

Silver prices for March delivery added 14 cents to close at $30.08 an ounce, while the U.S. dollar index sank 0.35% to $80.22.

Reports emerged during the weekend that Japan's government would implement an emergency economic stimulus package worth about $113 billion. News of the possible stimulus package didn't appear to create a significant move in the gold price.

Gold-mining stocks closed mostly lower on Monday. Shares of Agnico-Eagle Mines (AEM - Get Report) lost 2.8%, but shares of NovaGold Resources (NG) climbed 0.83%.

Among volume leaders, Barrick Gold (ABX - Get Report) was off 1.5%, and Gold Fields (GFI) slumped 1.4%.

Gold ETF SPDR Gold Trust (GLD) shed 0.63%, while iShares Gold Trust (IAU) slid 0.57%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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
IAU $12.36 -0.44%
GLD $122.49 -0.38%
AEM $44.46 -2.70%
ABX $17.89 -2.70%
NG $6.01 -2.70%


Chart of I:DJI
DOW 17,724.51 -26.40 -0.15%
S&P 500 2,056.47 -6.90 -0.33%
NASDAQ 4,749.7220 -13.5020 -0.28%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs