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 Slumps on Dollar Strength (Update 1)

Stocks in this article: GLD IAU AU GFI ABX

Updated from 1:06 p.m. ET with settlement prices

NEW YORK ( TheStreet) -- Gold prices retreated Friday, consuming Thursday's gains, as the U.S. dollar strengthened against a basket of currencies for the first session since the beginning of the trading week.

Gold for August delivery at the COMEX division of the CME fell $19 to settle at $1,393 an ounce. The gold price traded as high as $1,421.60 and as low as $1,389.20 an ounce, while the spot price was dropping $21.60, according to Kitco's gold index.

The U.S. dollar index was rising 0.46% to $83.39 after the Chicago Institute for Supply Management said its business barometer popped to 58.7 in May, up 9.7 from April. Economists polled by Thomson Reuters were expecting the index to hit 50.

Also jumping more than expected was the institute's employment barometer, which printed at 56.9 in May, up from April's 48.7 reading.

Analysts said gold prices were retreating on Friday after the yellow metal tested and failed to move past $1,420 an ounce.

"It's a bit hard to add for the upside beyond that ... so all of these moves are kind of rallies I think in a bear market still," said Edward Meir, precious metals analyst at INTL FCStone. "I still think gold is heading lower."

Silver prices for July delivery closed off 45 cents to $22.24 an ounce.

Gold ETF SPDR Gold Trust (GLD) was down 162% at $134.53, while iShares Gold Trust (IAU) was slipping 1.5% to $13.52.

Meir said outflows from major funds, including John Paulson's hedge fund and George Soros' fund, slowly continue to mount in the gold futures markets and exchange traded funds.

April's historic two-day selloff in gold prices mostly resulted from a run on the paper markets -- trading on futures and ETFs -- but physical demand by global central banks and retail purchasers in India and China supported the price from driving lower in the past month and a half. Meir said the physical support has been substantial, but he said it could only sustain for so long.

"If people are buying physical gold and they're not seeing appreciation, they're either not going to be buying more or the next wave of buyers are going to hold off as well," said Meir.

1 of 2

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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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