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 Continue Their Skid

Stocks in this article: GLD IAU SGOL NEM AU

NEW YORK ( TheStreet) -- Gold prices were plummeting Wednesday ahead of the Federal Reserve's minutes from its January meeting.

Gold for April delivery was falling $20.20 to $1,584 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,609.20 and as low as $1,578 an ounce, while the spot price was dropping $21.50, according to Kitco's gold index.

"It's just the downward momentum from earlier in the week; we saw some macro hedge fund selling, but this wasn't offset by physical buying in Asia," said Howard Wen, a precious metals analyst at HSBC Bank USA. "It has picked up recently from China, but it's not enough to offset that pressure from macro funds."

The yellow metal last week sank in four of five trading sessions in thin trade volumes as China was absent from the gold market for the Lunar New Year holiday.

Though Chinese traders re-entered the market this week, gold prices have continued their skid and dipped below the $1,600 an ounce threshold.

Silver prices for March delivery were dropping 77 cents to $28.65 an ounce, while the U.S. dollar index was jumping 0.32% to $80.77.

Wednesday's plunge also comes ahead of the Federal Reserve's policy-making minutes from its January meeting. Many analysts aren't expecting a surprise from central bankers, but they will be paying close attention to the latest language for any hints of an end to the Fed's quantitative easing programs.

"What I'm looking for in the Fed minutes is really just any commentary related to an early departure from the QE programs, any type of commentary that discusses ending these programs earlier than the stated 6.5% unemployment rate and 2.5% inflation target," said Drew Nordlicht, managing director at HighTower San Diego. "Because of the technicals on gold , today's commentary on the Fed's will be relatively pivotal on at least a short-term price movement."

Gold ETFs were charging lower on Wednesday, in line with the drop in futures. SPDR Gold Trust (GLD) was sliding 1.3%, while iShares Gold Trust (IAU) was tumbling 1.2%. ETFs Gold Trust (SGOL) was also shedding 1.3%.

1 of 2

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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

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