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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Prices Climb After BOJ Announces Easing (Update1)

Stocks in this article: AUY GOLD ABX GLD IAU NEM

(Updated from 11:13 a.m. ET with settlement prices.)

NEW YORK ( TheStreet) -- Gold prices closed higher Tuesday after the Bank of Japan announced a new monetary-stimulus program.

Gold for February delivery rose $6.20 to $1,693.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,695.90 and as low as $1,684.80 an ounce, while the spot price was adding $4, according to Kitco's gold index.

"Bank of Japan move signals possible inflation down the road," George Gero, precious metals strategist at RBC Wealth Management, wrote in a note on Tuesday.

Silver prices for March delivery added 25 cents to $32.18 an ounce, while the U.S. dollar index was shedding 0.2% to $79.87.

The Bank of Japan announced it would implement an open-ended, monthly purchasing program of about $11.28 billion of Treasury bills and Japanese government bonds, which would begin in January 2014.

The central bank also announced a 2% inflation-rate target.

The National Association of Realtors reported Tuesday that existing-home sales fell to 4.94 million in December from 5.04 million in November. Consensus among economists polled by Thomson Reuters had expected sales to rise at a seasonally adjusted annual rate of 5.1 million units.

The housing market has proven resilient in recent months in a sign that the U.S. economy has continued to strengthen despite sustained high unemployment rates and sluggish growth in the private sector.

Gold prices trend to the downside as economic indicators show signs of longer-term improvement as some investors view the yellow metal as a safe haven against economic uncertainty.

The economic calendar for this shortened week is light with initial jobless claims and a Purchasing Managers' Manufacturing index flash to print on Thursday, and a new-home report on Friday.

Gold's biggest movers in recent weeks have been announcements from the Federal Reserve and the European Central Bank.

The Federal Open Market Committee -- the Fed's policy-making wing -- roiled gold prices at the beginning of January when it reported mixed sentiment on the possible early conclusion of its monetary-stimulus programs.

Prices popped, though, the following week when ECB President Mario Draghi said he was optimistic about growth in the eurozone in the second half of 2013, and that he would not rule out possible easing measures moving ahead.

Gold-mining stocks were mostly higher Tuesday. Shares of Yamana Gold (AUY) were rising 4.7%, while shares of Randgold Resources (GOLD) were popping 5%.

Among volume leaders, Barrick Gold (ABX) was up 2.2%, and Newmont Mining (NEM) was up 1.7%.

Gold ETF SPDR Gold Trust (GLD) was increasing 0.58%, while iShares Gold Trust (IAU) was adding 0.51%.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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