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 Sinks Ahead of Fed Announcement

Stocks in this article: GLD IAU SGOL

NEW YORK ( TheStreet) -- Gold prices were plummeting as profit-takers sank the yellow metal ahead of the Federal Reserve's policy-making announcement Wednesday afternoon.

Gold for June delivery at the COMEX division of the CME was dropping $27.90 to $1,444.20 an ounce. The gold price traded as high as $1,477.40 and as low as $1,442.80 an ounce, while the spot price was diving $32.50, according to Kitco's gold index.

"It's a lot of profit-taking ahead of the FOMC decision," said Howard Wen, precious metals analyst at HSBC Bank U.S.A.

Buyers in Asia didn't lend support to gold prices overnight as much of India and China recognized the May Day holiday.

"In terms of early trading, India and China are out on May Day, and so the traditional physical buyers didn't really provide much support there," said Wen.

The Fed is expected to make its policy-making announcement on the federal funds rate at 2 p.m. EDT. The previous meeting among Federal Open Market Committee members suggested more central bankers had warmed up to the idea of scaling back quantitative easing programs. Rumblings of a cutback had dinged gold prices as investors often view the precious metal as a hedge against inflation.

Many economists aren't expecting the Fed to make any changes to the current policy, and analysts suspect the central bank will step back from its calls to reduce monetary stimulus as U.S. economic data generally has been weaker than expected for the past month.

Silver prices for July delivery were sliding 85 cents to $23.34 an ounce, while the U.S. dollar index was dipping 0.17% to $81.59.

Gold ETFs SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) were dropping 2.1%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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