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 Prices Settle Higher on Cyprus Unknowns (Update 2)

Updated from 12:39 a.m. ET with settlement prices

NEW YORK (TheStreet) -- Gold prices were ticking higher midday Wednesday as uncertainties in Europe, specifically Cyprus, continued to put pressure on the euro and bring some safe-haven appeal to the yellow metal.

Gold for June delivery at the COMEX division of the CME settled up $9.90 to $1,607.20 an ounce. The gold price traded as high as $1,608.50 and as low as $1,591.90, while the spot price was gaining $7.40, according to Kitco's gold index.

"There's little to say on gold over the last few days; the temporary solution with Cyprus has relieved the markets," said Anne-Laure Tremblay, precious metals strategist at BNP Paribas. "The lack of interest for gold can also be seen through the small level of volatility, which if you look at the realized volatility, it's really quite low."

The small Mediterranean island nation-state was determining capital controls for its financial institutions ahead of Thursday, when it is expected to reopen its banks.

This has come after the International Monetary Fund, European Commission and European Central bank agreed with the Cypriot government to the terms of a deal that would unlock $12.8 billion (€10 billion) to recapitalize the country's banks.

"The fact that euro is down, gold is higher, to me, relatively, it's strong. Not a lot of volume, but still there's that European bid in gold here," said Thomas Vitiello, principal at Aurum Options Strategies, LLC. "This Cyprus issue is unfolding, it's not pretty and tomorrow the banks open -- who knows what that will look like on television?"

Silver prices weren't benefiting from the rise in gold as May contracts slid 7 cents to close at $28.61, while the U.S. dollar index was gaining 0.45% to $83.23.

The greenback was strengthening to $1.2776 against the euro on Wednesday, from its prior-day close at $1.2860.

Non-commercial futures positions have rebounded as a share in open interest, which is a positive factor lending some support to the yellow metal, BNP Paribas' Tremblay said. Investors, though, should not necessarily read this as a bullish upswing. Tremblay said these positions historically are still low, but that we are seeing a change of trend. She said it's a slight move to a more neutral outlook, from a previous bearish attitude in gold.

Gold trading volumes were average on the COMEX before the holiday weekend.

A lineup of Federal Reserve officials were speaking on Wednesday, including Chicago Fed President Charles Evans, Boston Fed President Eric Rosengren, Cleveland Fed President Sandra Pianalto and Minneapolis Fed President Narayana Kocherlakota.

Gold mining stocks were mostly higher on Wednesday. Shares of Eldorado Gold (EGO) were rising 2.3%, and shares of Goldcorp (GG) were up 2.2%.

Among volume leaders, Barrick Gold (ABX) was adding 2%.

Gold ETF SPDR Gold Trust (GLD) was increasing 0.45%, while iShares Gold Trust (IAU) was ticking higher by 0.39%.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Brokerage Partners

Rates from Bankrate.com

  • 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