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 Slump as Debt Limit Deal Raises Stability Hopes (Update 1)

Stocks in this article: EGO KGC AAPL GLD IAU ABX AUY

Updated from 12:57 p.m. EST with settlement prices

NEW YORK ( TheStreet) -- Gold prices moved lower on Thursday after investors bet that Washington's short-term extension of the debt ceiling would lead to a deal in four months. Gold fell 0.38% on Wednesday.

Gold for February delivery lost $16.80 to settle at $1,669.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,685.80 and as low as $1,664.20 an ounce, while the spot price was sliding $15.50, according to Kitco's gold index.

Congress' decision to temporarily extend the debt limit gave investors a level of hope that legislators would reach an effective deal in the next few months to ensure that the government could continue to pay its bills, said GMG Defensive Beta Fund Co-portfolio Manager Oliver Pursche.

Thursday's move failed to push the yellow metal out of the tight trading range it has held in the past few weeks.

"Gold is in a trading range right now. What that tells me is there's no one rushing to sell, but there's no one rushing to buy either," said Pursche.

Apple's (AAPL) fiscal first-quarter earnings report on Wednesday may have also dragged down the yellow metal on Thursday.

"Yea, Apple just kind of took the whole market with it," said Anthem Blanchard, CEO of Blanchard Vault. "I think you're seeing gold surf on the momentum of that, short term."

The iPhone seller announced earnings of $13.81 a share on revenue of $54.5 billion, after analysts polled by Thomson Reuters had expected $54.73 billion in revenue and profit of $13.47 a share. The revenue miss socked the company's share price in after-hours trades on Wednesday, sinking shares at one point by more than 10%.

Silver prices for March delivery were down 72 cents to close at $31.72 an ounce, while the U.S. dollar index was shedding 0.04% to $79.93.

Gold prices rebounded off earlier lows as the euro gained momentum enough to weaken the U.S. dollar's strong session against the Japanese yen. The dollar was gaining to $89.95 against the yen from the prior day's close at $88.62. But the euro was climbing against the dollar to $1.3372 from its previous day's close at $1.3318.

1 of 2

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 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

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