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 Prices May Be Reaching a Bottom

NEW YORK ( TheStreet) -- Gold prices were rising on Monday as sentiment among traders remained positive for the yellow metal.

Gold for August delivery at the COMEX division of the CME were increasing $5.10 to $1,282.70 an ounce. The gold price traded as high as $1,293.60 and as low as $1,272.50 an ounce, while the spot price was slipping 82 cents.

Multiple research notes out Monday morning suggested that more analysts believe price support for gold may be firming following the shift to a bear market in mid-April, when prices plummeted some 13% across two consecutive trading sessions .

"The strength in China and India gold premiums, the recent move higher in gold lease rates and central bank gold buying indicate physical demand for gold may provide some support in the near term," Deutsche Bank wrote in a note on Monday.

Silver prices for July delivery were up 3 cents to $19.83 an ounce, while the U.S. dollar index was adding 0.28% to $83.16.

Also lending support to prices was a mixed bag of economic data from China overnight. Second-quarter gross domestic product there slowed to 7.5% year over year from 7.7% the previous quarter, which bolstered a trend of declining GDP numbers in the country. China also reported that industrial production dipped, but retail sales increased.

"We saw a lot of weakness out of China and that weakness is thought that China is going to still be continuously ramping up their [quantitative easing] plan -- or at least getting in the market and driving it in that direction," Phil Streible, senior commodities broker at RJO Futures, said in an interview.

Streible said he was expecting momentum to continue. Last week COMEX gold rose 5.4% as Federal Reserve Chairman Ben Bernanke commented that the central bank would remained committed to a highly accommodative monetary policy and that the short-term federal funds rate wouldn't rise anytime soon.

Paper markets -- COMEX futures and exchange-traded funds -- have led the charge lower in gold prices as record outflows from the ETFs have mounted in 2013. But last week marked the first week in more than two years during which the lowest trade of gold ETF SPDR Gold Trust (GLD) didn't dip below the closing price for the previous week, according to Miller Tabak.
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
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
IAU $10.30 0.73%
ABX $7.36 3.50%
AU $6.40 2.10%
NG $3.71 3.30%
GLD $102.04 0.78%


Chart of I:DJI
DOW 17,771.50 -26.99 -0.15%
S&P 500 2,087.17 -2.94 -0.14%
NASDAQ 5,119.9310 -7.5940 -0.15%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs