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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Gold Prices Surge As Bernanke Speaks

NEW YORK ( TheStreet) -- Gold prices surged Tuesday as Federal Reserve Chairman Ben Bernanke gave the yellow metal a boost with his assertion that the central bank would continue a policy of low interest rates.

Gold for April delivery settled up $28.90 at $1,615.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,619.70 and as low as $1,583.70, while the spot price was popping $20.90, according to Kitco's gold index.

"He Bernanke says asset purchases will continue, and then throughout the testimony one of the things he said is that while he supports the Japanese fight against deflation, what does that mean? More easy money, more money printing, and clearly that's a good thing for gold in the medium term," Axel Merk, chief investment officer of Merk Investments, said in an interview.

Senators barraged Bernanke for some two hours with questions about the economy and the Fed's role in maintaining low inflation rates and reducing the unemployment rate -- the bank's "dual mandate."

"Notably, keeping longer-term interest rates low has helped spark recovery in the housing market and led to increased sales and production of automobiles and other durable goods," Bernanke said in his testimony. "By raising employment and household wealth--for example, through higher home prices--these developments have in turn supported consumer sentiment and spending."

Silver prices for March delivery added 27 cents to $29.26 an ounce, while the U.S. dollar index was slipping 0.05% to $81.85.

"I think there was some noise a few weeks ago about the Fed potentially giving up on monetary stimulus; I think it's premature for that," said Troy Logan, senior economist at Warren Financial Service. "I think the Fed is going to be accommodative for a while. So they're going to continue to support the economy."

Gold mining stocks closed mostly higher on Tuesday. Shares of NovaGold Resources popped 4%, while shares of Randgold Resources (GOLD - Get Report) rose 3.5%.

Among volume leaders, Barrick Gold (ABX - Get Report) was up 1.5%

Gold ETF SPDR Gold Trust (GLD) added 1.2%, while iShares Gold Trust (IAU) jumped 1.3%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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!
SYM TRADE IT LAST %CHG
ABX $13.02 0.00%
GOLD $79.19 0.00%
GLD $116.16 0.00%
IAU $11.71 0.00%
NG $3.72 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

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