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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gold Prices Fall on Mixed Central Bank Sentiment

Stocks in this article: GLD IAU ABX KGC NG

South Korea's central bank cut its benchmark rate to 2.5% from 2.75%, a day after the Reserve Bank of Australia announced a surprise rate cut of its own to 2.75% from 3%. Despite the gold price's heavy tracking of Fed and ECB monetary policy, some analysts believe rate cuts from Australia and South Korea provide some support to the yellow metal.

"It continues a pattern of major central banks deflating their currencies, and that is a bullish underlying factor for gold," Jim Wyckoff, senior metals analyst at Kitco.com, said in an interview. "Even though gold isn't popping on this given day or this given week ... I think going forward in the coming weeks and months it will work to support buying interest."

Outflows from ETFs have continued as gold ETF SPDR Gold Trust (GLD) yesterday experienced about 200,000 ounces of liquidation, according to HSBC's Wen.

Shares of SPDR Gold Trust, the largest trading gold ETF, were ticking lower by 0.13% to $142.27. The ETF is down about 12.2% year to date.

The Bank of England didn't provide any new support to gold prices as the central bank on Thursday maintained its bank rate at 0.5% and the size of its asset purchase program at £375 billion.

Physical demand from China and India have continued to help gold retrace more than half its losses since the April 12 and April 15 collapse. India is the world's largest purchaser of physical gold and will be celebrating Akshaya Tritiya next week. The holiday is the country's second largest gold-buying festival.

Gold mining stocks were mostly higher on Thursday. Shares of Kinross Gold (KGC) were adding 4.8%, while shares of NovaGold Resources were climbing 4.5%.

Among volume leaders, Barrick Gold (ABX) was up 0.73%.

Gold ETF iShares Gold Trust (IAU) was decreasing 0.12% to $14.29 a share.

-- Written by Joe Deaux in New York.

>Contact by Email.

2 of 2

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!

Markets

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 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