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

China Trade Report Sends Metals, Oil Higher

By The Associated Press

Prices for gold and other metals jumped Thursday, propelled by an encouraging report about China's trade growth.

Gold for February delivery rose $22.50, more than 1 percent, to $1,678 per ounce. March silver rose more than 2 percent, up 66.9 cents to $30.918 per ounce.

Alan Knuckman, chief market strategist at Optionshop in Chicago, said gold was turning around after the detrimental effect of the Federal Reserve minutes last week. Gold prices had slipped after the Fed disclosed that some of its board members disagree over how long the central bank should continue a bond-purchasing program.

The bond-buying program is intended to invigorate the economy, by keeping the return on bond investing low and thus encouraging investors to move into stocks. Such a program can also encourage inflation, though, and many investors buy gold because they think it will be a hedge against inflation. So when there were hints that some Fed members wanted to curb the bond-buying program sooner rather than later, gold fell.

Knuckman said Thursday that investors were realizing that they'd overreacted to the Fed disclosure. "They're not going to stop this cheap-money policy any time soon," Knuckman said, referring to the Fed's bond buying. "People read too much into those Fed minutes."

Also boosting metals prices were hints that the global economy could be improving. China's exports and imports rose, a sign of higher demand both inside and outside the country. Mario Draghi, head of the European Central Bank, said the struggling euro area should start growing again later this year.

That sent up prices for metals that are key to manufacturing. March copper rose 3.85 cents, or 1 percent, to $3.709 per pound. March palladium rose $14, or 2 percent, to $702.20 per ounce. April platinum rose $34.30, more than 2 percent, to $1,634.30 per ounce.

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
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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community


Chart of I:DJI
DOW 16,247.72 +189.37 1.18%
S&P 500 1,932.32 +18.47 0.97%
NASDAQ 4,691.4360 +55.3310 1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs