This Day On The Street
Continue to site
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

Gold Falls as Consumer Confidence Surges (Update 1)

Updated from 11:16 a.m. ET with settlement prices.

NEW YORK ( TheStreet) -- Gold prices dropped on Tuesday as a pop in consumer confidence and equities turned traders from the yellow metal's safe-haven appeal.

Gold for June delivery at the COMEX division of the CME closed off $7.70 to settle at $1,378.90 an ounce. The gold price traded as high as $1,401 and as low as $1,372.10 an ounce, while the spot price was dipping $4.10, according to Kitco's gold index.

The Conference Board Consumer Confidence Index jumped to 76.2 in May, up from 69 in April, to post its highest point in five years.

Gold also slipped as investors moved into equities, which were surging more than 1% and nearing all-time highs.

"A lot of people think on equities that new high is going to be breached . . . so, still no reason to hold gold with very little inflation," said Phil Streible, a senior commodities broker at RJO Futures.

Silver prices for July delivery ticked lower by 30 cents to $22.19 an ounce, while the U.S. dollar index was climbing 0.54% to $84.11.

Prices received a slight boost when the S&P/Case-Shiller 20-city home price index posted a March increase of 10.9%, up from 9.3% in February. Economists polled by Thomson Reuters were expecting prices to rise by 10.2%. The brief increase in gold on the housing news occurred because the larger-than-expected upswing in home prices suggests an upswing in inflationary pressure.

Gold mining stocks were mixed on Tuesday. Shares of Kinross Gold (KGC - Get Report) were falling 2.8%, while shares of NovaGold Resources (NG) were adding 2.2%.

Among volume leaders, Barrick Gold (ABX - Get Report) was down incrementally at $19.16 a share.

Gold ETF SPDR Gold Trust (GLD) was sliding 0.17% to $133.53, while iShares Gold Trust (IAU) was down 0.3% to $13.41.

-- Written by Joe Deaux in New York.

>Contact by Email.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ABX $19.37 0.00%
GLD $123.65 0.00%
IAU $12.48 0.00%
KGC $5.70 0.00%
NG $6.49 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs