This Day On The Street
Continue to site right-arrow
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 Takes A Spill And Picks Itself Up

Gold Takes a Spill and Picks Itself Up

Gold recovered to some extent on Thursday after having a horrendous day on Wednesday due to signals from the US Federal Reserve that quantitative easing (QE) in the United States could come to end as early as March. 

Minutes from the Federal Open Market Committee meeting show that some members of the central bank want to reduce, or even end, the asset-purchase program before the stated goal of 6.5 percent unemployment is reached. Improved economic conditions in the US were cited as the reason for potentially pulling the plug on the program, which injects $85 billion per month into the US economy through the central bank's purchase of Treasury securities and mortgage bonds.

That sent gold reeling to a seven and a half-month low, with spot gold plunging $44.90 to finish at $1,560 on Wednesday. The Fed signal pushed other metals down as well, including  silver, which lost a buck,  nickel and copper, which hit a 2013 low on Thursday after China said it is considering a property tax to curb a sharp rise in house prices. Global stock markets were also hammered by the Fed news, with investors piling out of equities on the assumption that economic growth could slow without further stimulus measures.

Gold observers were quick to remind investors on Wednesday that gold's trend line is discouraging to say the least, with its 50-day moving average dropping below its 200-day moving average — a technical trading phenomenon known as the “death cross."

Gold's selloff on Wednesday, however, was tempered on Thursday by some short covering and bargain hunting by bullion traders, and that sent the yellow metal climbing in value — though gains were restricted by mounting strength in the US dollar.

1 of 4

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
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!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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