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

Gold Falls Sharply, Closes Below $1,600 An Ounce

By The Associated Press

Gold prices fell sharply Wednesday following the latest positive signs for the U.S. economy and signs of dissent at the Federal Reserve about continuing its bond purchases.

Gold for April delivery dropped $26.20, or 1.6 percent, to $1,578 an ounce, its first close below $1,600 an ounce since August.

News that the pace of home construction last month was the third-highest since 2008 was the latest indication that the U.S. housing market is recovering. That has helped diminish the appeal of gold as a defensive investment.

Also Wednesday the Federal Reserve released minutes of its latest policy meeting revealing that some policymakers are doubtful about continuing the Fed's bond purchases. They said the program could cause inflation, unsettle financial markets or cause the Fed to absorb losses once it begins selling its investments. The Fed has said it plans to keep buying $85 billion in bonds each month until the job market improves.

If the Fed ends or curtails its program earlier than anticipated, it would likely result in higher U.S. interest rates and a stronger dollar. One of the reasons investors buy gold is to have an alternative to holding dollars. As a result, gold often falls when traders think the dollar will strengthen, and vice versa.

Other metals prices also fell. Silver dropped 2.7 percent. The March contract gave up 80 cents to end at $28.622. April platinum fell $50.40, or 3 percent, to $1,647.10 and March palladium fell $27.75, or 3.6 percent, to $736.40.

Copper fell 4.15 cents to $3.6080 a pound.

In agricultural futures, March wheat rose 6.25 cents to $7.385 a bushel, March corn rose 5.25 cents to $7.005 a bushel and soybeans fell 12.50 cents to $14.8275 a bushel.

Most energy futures were lower.

April crude lost $1.88, or 2 percent, to finish at $95.22 a barrel on the New York Mercantile Exchange. The March contract, which expires Wednesday, fell $2.20 to end at $94.46 per barrel.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

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 Bankrate.com

  • 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