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

Can't Keep the Gold Market Down

NEW YORK ( TheStreet) -- Gold prices are posting gains for the seventh of the past eight sessions as a raft of influences were providing positive momentum for traders.

Gold for December delivery at the COMEX division of the New York Mercantile Exchange was tacking on $6.40 to $1,367.30 an ounce late Friday morning. The gold price traded as high as $1,374.30 and as low as $1,357 an ounce, while the spot price was increasing $2.96.

The yellow metal is up about 4% during August. Analysts initially deemed the August move a short-covering trade, but many now say it could be a rally with more gains ahead.

"The fact that gold is rallying with base [metals] as yields rise certainly suggests that there is something 'out of the norm' going on - to us it represents the market making a bet on future Fed actions," Marex Spectron wrote in a note Friday morning. "One could dismiss it is a short squeeze but ultimately what is the difference between a 20% short squeeze and a 20% bull market?"

Analysts from JPMorgan echoed a similar sentiment in a research note to clients on Thursday, advising clients to purchase gold.

"Buy the bounce," precious metals analysts John Bridges and Anant Inani wrote in the research note's headline.

Gold's huge rise on Thursday following the revelation that Paulson & Co. cut its gold position in half, Bridges and Inani suggested, meant the move "may be delivering an exclamation mark to define the end of the 10-month, 25% fall in gold and 50% fall in gold equities."

Michael Smith, president of T&K Futures and Options, said in a phone interview that gold traders are not dismissing escalating violence in Egypt.

"This new violence has really got people scared," Smith said. "I think that [it's] the safe-haven trade all over again, like we saw two years ago when Greece was going to collapse and Italy and all the gold people ran to gold again for the currency hedge."

Silver prices for September delivery were climbing 17 cents to $23.10 an ounce, while the U.S. dollar index moved higher by 0.16% to $81.30.
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
ABX $17.87 0.00%
GLD $122.07 0.00%
IAU $12.34 0.00%
NEM $32.86 0.00%
SLV $16.51 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs