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
TheStreet Open House

Gold Pops Off Three-Year Low

NEW YORK ( TheStreet) -- Gold prices were rising Friday as traders covered their short positions in a dramatic reversal from earlier in the morning, which had witnessed the yellow metal dip below $1,200 an ounce for the first time since August 2010.

Gold for August delivery at the COMEX division of the CME was climbing $3.70 to $1,215.30 an ounce. The gold price traded as high as $1,220.80 and as low as $1,179.40 an ounce, while the spot price was adding 42 cents.

COMEX gold has dropped more than $400, or 25%, in the second quarter of 2013, a period that witnessed the precious metal's largest two-day selloff in some 30 years.

Gold held below $1,200 an ounce for a period Friday morning, but shot above the flatline as heavy short covering entered the market on the backs of bargain hunters who found few sellers following a favorable consumer sentiment report, according to a note from George Gero, precious metals strategist at RBC Capital Markets.

The Reuters/University of Michigan consumer sentiment index in June rose to 84.1, a slight increase from 82.7 in the middle of the month.

Fact and Opinion Chief Economist Robert Brusca called the reading mixed, because the reading is stronger than the preliminary estimate but lower month over month.

Gold has failed to post a single positive trading session this week, with prices dropping nearly $15 on Monday, about $45 on Wednesday and more than $18 on Thursday.

The space in the immediate term has been difficult since the Federal Reserve on June 19 issued its latest policy-making statement. Fed Chairman Ben Bernanke followed the statement with his own comments, which traders interpreted as a signal that speculation had shifted to when the central bank may start to taper its monetary stimulus program, instead of whether it would taper.

"Nobody wants to catch the falling knife," said James Moore, an analyst at "I think for now maybe the short-term risk to the downside are easing, but it's going to be a brave person that stands up to the momentum."

Silver prices for September delivery were moving up 69 cents to $19.25 an ounce, while the U.S. dollar index was rising 0.35% to $83.24.

Physical demand, which propped up unstable prices in April, remains weak in June as demand falls further in India -- the world's largest consumer of gold. The government there imposed duties on gold and other imports in an attempt to reduce a trading deficit. Demand from China also has waned on concerns that the economy is slowing.'s Moore said he anticipated relief on Friday because he had expected dips on book-squaring to occur earlier in the week.

1 of 2

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
ABX $11.29 0.00%
AUY $3.83 0.00%
GLD $115.06 0.00%
IAU $11.60 0.00%
KGC $2.36 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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