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
TheStreet Open House

Gold Prices Pop as Investors Cover Short Positions

NEW YORK ( TheStreet) -- Gold prices were popping on Friday after a poor jobs report forced investors to cover their short positions.

Gold for April delivery at the COMEX division of the CME was jumping $13.40 to $1,565.80 an ounce. The gold price traded as high as $1,576 and as low as $1,549 an ounce, while the spot price was gaining $13.80, according to Kitco's gold index.

"There's a lot of shorts in the market here," Tom Vitiello, partner at Aurum Options Strategies, said in an interview from the NYMEX. "We had people basically getting out of their shorts during the Cyprus crisis, ... once ... the perception of it subsided basically the shorts got back in again and they were in control as of yesterday. But today it was quite painful to be short with that number that came out."

Gold prices dipped to a 10-month low on Thursday as the yellow metal charged through technical support to settle below $1,550 an ounce. Despite a small boost in mid-March on uncertainties about the solvency of Cyprus' banking sector, gold futures quickly shrugged off the event and slipped into a downward trend for the past couple of weeks.

The Bureau of Labor Statistics reported Friday that nonfarm payrolls for March added just 88,000 jobs, which was far below economists' expectations. Consensus among analysts surveyed by Thomson Reuters was for 200,000 new jobs in March.

"In terms of people saying it's still tough to get a job and this doesn't feel like a very good market, obviously that's absolutely the case," said Kate Warne, investment strategist at Edward Jones.

Silver prices for May delivery was rising 27 cents to $27.04 an ounce, while the U.S. dollar index was tumbling 0.45% to $82.35.

The unemployment rate edged lower to 7.6% from the previous month's 7.7% rate, but the slight dip coupled with a decline in the civilian labor force by 496,000. The headline unemployment rate may appear positive, but it does not account for individuals who drop from labor force participation. Analysts have argued the drop in participation highlights a less-positive labor market.

Though March's jobs numbers looked weak, gold investors shouldn't read one report as a trend, and the bears may still have more momentum than those looking for upside surprise.

1 of 2

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!
ABX $11.29 0.00%
AU $9.86 0.00%
GLD $115.06 0.00%
IAU $11.60 0.00%
RGLD $63.90 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

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