This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
TheStreet Open House

Gold Prices Turn Negative (Update 1)

Stocks in this article: GOLD IAU GDX GLD GDXJ GFI

"Clearly we know that the PIGS countries are called the pigs for a reason -- that being that there's too much debt on their respective balance sheets and that they've over-levered themselves," said Kevin Mahn, president of Hennion & Walsh Asset Management. "The dark clouds that persist over Europe ... Italy and Spain coming to the forefront again yesterday, and then the looming round two of the fiscal cliff as relates to spending cuts and potential sequestration."

Though sequestration talks haven't heated up in Washington, Republican leaders thump President Barack Obama on Monday for missing a deadline to submit his 2013 budget proposal.

Monday marked the deadline for Obama to submit his budget, but White House Press Secretary Jay Carney told reporters to focus on substance over deadlines.

House Speaker John Boehner used the occasion to take a swipe at the president.

"For the fourth time in five years this White House has proven it does not take trillion-dollar deficits seriously enough to submit a budget on time," Boehner said in a statement.

Carney acknowledged that he saw Boehner had made a comment about the missed deadline.

"The president has put forward consistently budgets that achieve what the American people overwhelmingly support, which is balanced deficit reduction, deficit reduction combined with investments in areas of our economy that would help the economy grow and create jobs," Carney told reporters on Monday aboard Air Force One.

Gold prices haven't reacted to the uncertainty surround the budget and possible cuts, but investors may begin to pay more attention if continued quarrels between the president and the GOP-controlled House push into March when deadlines approach on sequestration and a new budget.

Gold mining stocks were mostly lower Tuesday. Shares of Gold Fields (GFI) were losing 1.3%, and shares of Randgold Resources (GOLD - Get Report) were dipping 1.9%.

Among mining ETFs, Market Vectors Gold Miners ETF (GDX) was effectively unchanged, while Market Vectors Junior Gold Minders ETF (GDXJ) was off 0.80%.

Gold ETF SPDR Gold Trust (GLD) was slumping 0.05%, while iShares Gold Trust (IAU) was shedding 0.04%.

-- Written by Joe Deaux in New York.

>Contact by Email.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

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