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
TheStreet Open House

Gold Prices Dive as Money Flows to Equities (Update 1)

Stocks in this article: GLDIAUABX

Updated from 2:07 p.m. ET with settlement prices

NEW YORK ( TheStreet) -- Gold prices plummeted on Tuesday as investors poured out of safe-haven assets and into equities.

Gold for June delivery at the COMEX division of the CME dropped $25 to $1,575.90 an ounce. The gold price traded as high as $1,604.30 and as low as $1,574 an ounce, while the spot price was tumbling $23.90, according to Kitco's gold index.

"The money has been flowing into the U.S. dollar, into the U.S. equity markets; the U.S. equity markets pinned primarily because of the Federal Reserve's zero-rate policy," said Peter Hug, global trading director at Kitco Metals. "So the money is moving into the risk assets of the equity markets in the United States."

Silver prices for May delivery dropped 70 cents to $27.25 an ounce, while the U.S. dollar index was adding 0.24% to $82.94.

Private investors continued to add gold to their portfolios in March but at a slower pace than February, a survey released Tuesday by BullionVault found. The index settled at 53.2 in March against 54.4 in February, and marked the third-consecutive month of decline.

"I did expect it to fall greater, and to me this just shows that the public is not convinced of the recovery yet," said Miguel Perez-Santalla, a vice president at BullionVault. "The federal government is kicking the can down the road, and that's what the public believes."

Societe Generale analysts released a report on Tuesday morning that said they believed gold had entered bubble territory.

"Rising interest rates, driven in part by a positive view of the U.S. economy with an associated improvement in the dollar, could be the perfect storm to start a longer-term bear market," the report said.

Gold ETF SPDR Gold Trust (GLD) lost 1.5% to close at $152.43 a share, while iShares Gold Trust (IAU) was off 1.5% to $15.32 a share. Gold mining giant Barrick Gold (ABX) dropped 2.5% to $28.29 a share.

-- 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!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

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