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 Tumbles as Negative Outlook Outweighs Yellen Pick

Stocks in this article: GLD IAU SGOL ABX

NEW YORK (TheStreet) -- Gold prices were slumping on Wednesday as a panel of precious metals analysts said investors should sell the yellow metal headed into 2014.

Gold for December delivery at the COMEX division of the New York Mercantile Exchange was falling $18 to $1,306.60. The gold price traded as high as $1,323.30 and as low as $1,302.60 an ounce, while the spot price was losing $14.36.

Jeffrey Currie, head of commodities research at Goldman Sachs, said at the Commodities Week conference in London on Wednesday that gold is a "slam dunk" sell because the U.S. economy should witness a "significant" recovery following U.S. Congress' resolutions on the debt ceiling and government shutdown.

Ric Deverell, head of commodities research at Credit Suisse, called selling gold positions a top priority in 2014.

The negative outlook among analysts outweighed Tuesday night's reports that President Obama is set to nominate Janet Yellen as the next chief of the Federal Reserve. Gold investors view Yellen's central banking approach as similar to Chairman Ben Bernanke's policies.

Since the 2008 financial crisis, the Fed has implemented multiple rounds of unprecedented economic stimulus, which helped trigger gold¿s historic bull market that peaked in September 2011 and continues to provide support to prices, even though gold has entered what economists and financial analysts call a bear market.

Market participants think Yellen will continue with Bernanke¿s loose monetary policy, and that she won¿t scale back the Fed¿s pace of monthly asset purchases at too fast of a pace. Gold traders view this as positive for precious metals as the Fed¿s stimulus is viewed as long-term inflationary. Many investors buy gold as a hedge against currency inflation.

Silver prices for December delivery were sliding 46 cents to $21.98 an ounce, while the U.S. dollar index was jumping 0.54% to $80.42.

Gold mining stocks were mostly lower, in line with the drop in gold prices.

Among volume leaders, Barrick Gold (ABX) was down 1% to $17.49 a share.

Gold ETF SPDR Gold Trust (GLD) was off 1.1% to $125.94, while iShares Gold Trust (IAU) was falling 1.1% to $12.66.

-- Written by Joe Deaux in New York.

>Contact by Email.

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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