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 Slip as Investors Ease Off Positions

Stocks in this article: EGO GFI ABX GLD IAU

NEW YORK ( TheStreet) -- Gold prices were dropping on Friday as investors eased off their positions heading into the weekend.

Gold for April delivery was falling $6 to $1,607.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,615.30 and as low as $1,602.60 an ounce, while the spot price was falling $6.50, according to

"What we haven't managed is to break through important levels, which indicates that there's been some recent selling into this move higher, and that obviously leaves quite a lot of new long investors a bit nervous here as we head into the weekend," said Ole Hansen, head of commodities strategy at Saxo Bank in Copenhagen.

Gold prices rallied this week after news emerged that banks in Cyprus, a small island nation-state in the Mediterranean, faced insolvency. The European Central Bank had said it would only release emergency funds to the country's banks if Cyprus considered a tax on all bank deposits there.

Though the Cypriot parliament voted down the measure, it rattled many investors in Europe who were still uncertain how the country would craft a bailout plan. Concerns about Cyprus also weakened the euro and drove the U.S. dollar higher against it.

After the markets digested Cyprus' woes, the Federal Reserve reported on Wednesday its latest policy-making announcement and economic forecasts. By Thursday morning, it appeared that gold traders saw the Fed's statement and Chairmen Ben Bernanke's press conference as positive for the yellow metal because language from the Fed suggested the central bank wouldn't be scaling back its quantitative easing programs before the end of 2013.

Investors have kept their eyes on gold's technicals. The precious metal closed above the psychological $1,600 an ounce threshold on Monday, and all week has found lower-bound support at that level. But a lack of a huge surge higher in light of the Cyprus news has left analysts cautious of gold's current range.

"But I think more important than the short term, the psychological $1,600 support are the levels down around $1,585 an ounce ," Stanley Dash, vice president of applied technical analysis at TradeStation Securities, said in an interview. "We've pulled off the lows a little bit, momentum has eased, we're not so oversold, we're a little more neutral on momentum."

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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