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 Pauses as Quarter-End Approaches

Stocks in this article: NEM AU ABX GLD IAU

NEW YORK ( TheStreet) -- Gold prices were inching higher on Thursday but failed to gain greater upward momentum as many traders were book-squaring for the end of the quarter on Friday.

COMEX Gold for August delivery at the New York Mercantile Exchange was tacking on $1 to $1,230.80 an ounce. The gold price traded as high as $1,244.20 and as low as $1,223.40 an ounce, while the spot price was up $3.49.

"What we're going to see now is just evening out, and 'get me out for the weekend' tomorrow," said George Gero, precious metals strategist at RBC Capital Markets.

Gold prices started to climb early Thursday morning as traders considered the possibility of buying new positions on speculation that Wednesday's large selloff provided a cheap level to re-enter the market, but the end of the quarter on Friday and first-notice day on Monday squashed the run.

Silver prices for September delivery was ticking higher by 19 cents to $18.80, while the U.S. dollar index was up 0.13% to $83.06.

Physical demand in Asia remained tepid as investors continued to parse the stability of China's economy and financial sector. Taxes imposed on imports in India -- where imported gold is in high demand -- has further deteriorated physical demand of the yellow metal. Following gold's historic two-day selloff in mid-April, it was physical demand from Asia that provided strong support for prices.

"With sentiment for gold at its weakest in a long time, it would make sense for physical buyers to be more patient this time around, as this would also mean that very high premiums are more likely to be avoided," UBS wrote in a note on Thursday.

Outflows of gold ETFs continued at a record pace. Data compiled by Bloomberg showed that outflows in the past two trading days have exceeded outflows compiled in the first half of June, according to Commerzbank AG.

Gold mining stocks were mostly higher on Thursday. Shares of Newmont Mining (NEM) were rising 3.6%, while shares of AngloGold Ashanti (AU) were increasing 2.6%.

RBC Capital Markets's Gero said gold mining companies have begun to take hedging positions in the futures market as the price of gold has dropped near the average cost of production.

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!

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