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 Sink as Stocks Slip (Update 1)

Updated from 1:13 p.m. EST with settlement prices

NEW YORK ( TheStreet) -- Gold prices on Thursday reversed the prior day's gains as the yellow metal was sinking as stocks moved mostly lower. Gold rose 1.3% on Wednesday.

Gold for April delivery dropped $19.60 to $1,662 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,681.70 and as low as $1,658.40 an ounce, while the spot price was falling $14.50, according to Kitco's gold index.

"I think markets are treading water and waiting for some new signal, or stronger signal plus or minus; I think in the short run we could go in either direction," said Jeffrey Nichols, senior economic adviser at Rosland Capital.

Gold has traded in a tight range in recent days as investors have navigated through option expiration, a poor gross domestic product report and an unsurprising Federal Reserve policy-making announcement this past week.

Traders are also poised to analyze the Bureau of Labor Statistics January employment situation report and the Institute for Supply Management Manufacturing survey, both expected to print Friday morning.

Silver prices for March delivery lost 83 cents to $31.35 an ounce, while the U.S. dollar index was shedding 0.10% to $79.18.

The Fed has closely pegged its policy of low interest rates to the unemployment rate and inflation -- the so-called dual mandate. The central bank has said that it would keep interest rates low for as long as unemployment remained elevated above about 6.5% and inflation below 2.5%.

Should unemployment continue to slope down toward that 6.5% threshold, many analysts have suggested it could signal the eventual conclusion of the open-ended mortgage-backed securities and longer-term Treasuries purchases by the Fed.

Nichols and other gold analysts have said that gold is stuck in a trading range for the near term and could move in either direction. But a decided pop or slump would require an unexpected trigger, such as a big drop in the unemployment rate, a sudden greater loosening of monetary policy or a meaningful uptick in global economic growth, among other scenarios.

Ultimately, gold may hold higher as accommodative monetary policy in the U.S., Europe and Japan may continue through 2013, according to Nichols.
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
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
ABX $19.37 0.00%
GLD $123.65 0.00%
GG $20.15 0.00%
IAU $12.48 0.00%
KGC $5.70 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs