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

Gold Prices Extend Losing Streak as Dow Nears High (Update 1)

Stocks in this article: NG KGC GLD IAU AUY

Updated from 11:12 a.m. EST with settlement prices and analyst comments

NEW YORK ( TheStreet) -- Gold prices were sliding Thursday, the last day of February, as the Dow Jones Industrial Average headed towards its all-time closing high of 14,164.53. Gold dropped 1.2% on Wednesday as equities soared.

Gold for April delivery dropped $17.60 to settle at $1,578.10 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,602.50 and as low as $1,574.30 an ounce, while the spot price was shedding $19.10, according to Kitco's gold index.

European Central Bank President Mario Draghi asserted status quo policy moving forward as he pointed out that the bank would remain committed to price stability -- an answer to critics who have said the ECB is doing either too much or too little.

"The thing that the gold market is looking at right now is, they is just competing assets: the stock market is near a five-year high ... European stocks were firmer today, the Japanese and Asian stocks have rallied recently," Jim Wyckoff, senior metals analyst at, said in an interview. "The European Union sovereign debt crisis was back on the front burner earlier this week; that situation seemed to have calmed down a bit."

Silver prices for May delivery were dropping 24 cents to $28.75 an ounce, while the U.S. dollar index was jumping 0.31% to $81.82.

Domestic economic indicators showed continued recovery, which likely was adding to the slight downward pressure on gold prices.

The Labor Department reported that initial jobless claims for the week ended Feb. 23 were 344,000, a drop of 22,000 from the previous week. Economists were expecting claims to hit 360,000.

The Federal Reserve has pegged its policy to maintain low interest rates to an unemployment rate that holds at or above 6.5%. Any indication that the labor market is rapidly approaching that target would suggest the likely conclusion to low rates and the highly accommodative monetary stance.

Chicago PMI rose to 56.8 in February from January's 55.6. February's number was higher than economists' expectation for the index to fall to 54.

The Bureau of Economic Analysis released its second estimate of fourth-quarter 2012 gross domestic product and found that the economy grew slightly by 0.1%. This was a slight uptick from the first reading, which noted that the economy had contracted by 0.1%.

Gold mining stocks were mostly lower on Thursday. Shares of Agnico-Eagle Mines (AUY) were losing 3.6%, and Kinross Gold (NG) shares were off 3.5%.

Among volume leaders, Newmont Mining (KGC) was slipping 1.2%

Gold ETFs SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) were down 1.3%.

-- Written by Joe Deaux in New York.

>Contact by Email.

1 of 2

Select the service that is right for you!

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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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