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 Rises Slightly as Dollar Slips

NEW YORK ( TheStreet) -- Gold prices were gaining slightly on Wednesday as the U.S. dollar weakened against a basket of international currencies.

Gold for August delivery at the COMEX division of the CME was gaining $5.70 to $1,382.70 an ounce. The gold price traded as high as $1,386.10 and as low as $1,372.20 an ounce, while the spot price was ticking up $4.38.

"It's quiet, and has been all week," said James Steel, chief commodities analyst at HSBC.

Steel said he didn't expect gold prices to push much higher on Wednesday as China remained closed for a holiday, which has left traders without much of a sense where physical demand is hovering in the market.

Silver prices for July delivery were up 11 cents to $21.76 an ounce, while the U.S. dollar index was slipping 0.01% to $81.04.

Strength in the euro was offering gold some support as it was gaining against the greenback to $1.3317 from the prior day's close at $1.3313.

Gold exchange-traded products experienced outflows in May of $5.7 billion, which was an improvement from the $8.7 billion outflow in April, according to data from BlackRock.

HSBC's Steel said gold ETF outflows have continued to dribble off.

Traders also are preparing for the Federal Reserve's policy statement due next Wednesday. Along with the statement, the Fed will release its economic projections and Chairman Ben Bernanke will hold a press conference.

Questions have been swirling as to whether the Fed will scale back on its monetary stimulus. Economists and analysts suspect the central bank eventually will taper its purchases of mortgage-backed securities and longer-term Treasuries. Many investors view global central bank monetary stimulus as inflationary policy. Gold traders suggest Fed tapering would batter the yellow metal as the commodity often is seen as a hedge against inflation.

"I don't see them tapering until the fourth quarter, the economy is still on edge, but I do see them starting to taper," said Robert Spina, portfolio manager of the Spina Group at Morgan Stanley Wealth Management.

Gold mining stocks were mostly higher on Wednesday. Shares of Yamana Gold (AUY) were lifting 2.6%, and shares of Agnico Eagle Mines (AEM) were rising 2.2%,

1 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!

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