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 Surges as China Eases Lending Rates

NEW YORK ( TheStreet) -- Gold prices were popping on Monday morning as the U.S. dollar slipped and China signaled a shift in lending practices.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange was surging $28.40 to $1,321.30 an ounce. The gold price traded as high as $1,325 and as low as $1,297.40 an ounce, while the spot price was adding $9.42.

The People's Bank of China removed control of interest rates on loans offered by the nation's financial institutions.

"Seems like anybody can go out and get smaller denominated loans, and what that's going to do is that's going to start pumping some money back into the [Chinese] system," Phil Streible, senior commodities analyst at RJO Futures, said in an interview. Streible said this action is slightly inflationary, which is why gold continues to move up.

Silver prices for September delivery were gaining 81 cents to $20.27 an ounce, while the U.S. dollar index was dropping 0.39% to $82.31.

Gold mining stocks were strengthening on Monday. Shares of NovaGold Resources (NG) were climbing 5.8%, and shares of Eldorado Gold (EGO - Get Report) were jumping 5.5%.

Among volume leaders, Barrick Gold (ABX - Get Report) was increasing 4.7%.

Gold ETF SPDR Gold Trust (GLD) was up 2.2%, while iShares Gold Trust (IAU) was tacking on 2.3%.

-- Written by Joe Deaux in New York.

>Contact by Email.

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
ABX $11.91 0.00%
EGO $2.76 0.00%
GLD $113.83 0.00%
IAU $11.50 0.00%
NG $4.57 0.00%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs