This Day On The Street
Continue to site
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

Gold Prices Halt Losing Streak

NEW YORK ( TheStreet) -- Gold prices rose Thursday after the yellow metal pared early-session losses that had accrued because of uncertainty as to whether the Federal Reserve's would continue its highly accommodative policies past 2013.

Gold for April delivery tacked on 60 cents to settle at $1,578.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,584.40 and as low as $1,554.30 an ounce, while the spot price was popping $13.80, according to Kitco's gold index.

The Fed's January minutes, released on Wednesday, said that "many" central bankers were open to the idea of backing off monetary stimulus in 2013, but the policy-making wing didn't issue any changes in the latest statement.

The announcement came on the heels of more than a week of downward momentum in the gold market.

"We actually have seen downside price pressure in the gold market for longer than just yesterday," said Jim Wyckoff, senior metals analyst at Kitco.com, in an interview. "We are seeing technically related pressure, a stronger U.S. dollar index has added to selling pressure in the gold market. I think a lot of traders anticipated that the Federal Open Market Committee minutes on Wednesday afternoon would tilt toward the bearish side."

Silver prices for March delivery rose 77 cents to close at $28.70 an ounce, while the U.S. dollar index was jumping 0.39% to $81.40.

Helping gold prices retrace their losses on Thursday were a rise in initial jobless claims and a midday speech by San Francisco Fed President John Williams.

The Labor Department said initial jobless claims for the week ended Feb. 16 rose 20,000 to a seasonally adjusted 362,000, up from a prior-week revised 342,000 claims. Economists expected claims to rise 355,000. The four-week moving average rose to 360,750 from the previous average of 352,750.

The Fed's unemployment rate target of 6.5% as a threshold for it to boost interest rates has suggested to gold traders that a weaker labor market makes the precious metal a safe haven. But investors may not want to read too much from the labor data.

"I think it's a bit of a non-event. The short-term numbers are all over the place and we still have the lingering effects of Superstorm Sandy," said Marty Leclerc, chief investment officer at Barrack Yard Advisors.

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
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!
SYM TRADE IT LAST %CHG
ABX $12.52 0.00%
AUY $3.83 0.00%
AEM $29.82 0.00%
GLD $113.05 0.00%
IAU $11.40 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs