This Day On The Street
Continue to site
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

Gold Prices Rise Alongside Gap Up in Precious Metals

NEW YORK (TheStreet) -- Gold prices were gaining on Monday, in line with a rise in all precious metals, as investors were purchasing gold as a safety hedge against the possibility the Federal Reserve will scale back its economic stimulus program.

Gold for February delivery at the COMEX division of the New York Mercantile Exchange was tacking on $6.40 to $1,235.40. The gold price traded as high as $1,237.20 and as low as $1,224.60 an ounce, while the spot price was up $7.01.

"The gold price is getting just a small boost, but I think it's outside metals that are driving it up," Phil Streible, a senior commodities broker at RJO Futures, said in a phone interview from Chicago. Streible said people are becoming skeptical of the new highs on the S&P 500 because they fear the Fed's decision to begin so-called tapering this month will trigger selling.

Platinum, which is heavily used in catalytic converters in automobiles, was rising $16.60 to $1,372.90 an ounce for the January 2014 contract. Palladium was rising $4 to $740.15 an ounce.

Gold prices have benefited in recent years from the central bank's monetary stimulus programs, which many investors view as inflationary policy. Many traders use gold as a hedge against inflation.

The rising likelihood in 2013 that the Fed will curb stimulus has contributed to gold's largest year-long decrease in more than a decade. Stocks could also take a hit on the announcement that central bankers will scale back monetary stimulus.

In this event, investors rotating out of stocks could allocate some of their positions in gold.

Silver prices for March delivery were climbing 15 cents to $19.78, while the U.S. dollar index was slipping 0.05% to $80.22.

Gold mining stocks were mostly higher on Monday. Shares of Barrick Gold (ABX - Get Report) were adding 2.3% to $15.76, while shares of Newmont Mining (NEM - Get Report) were adding 1.9% to $23.45.

Gold ETF SPDR Gold Trust (GLD) was up 0.51% to $119.16, while iShares Gold Trust (IAU) was increasing 0.42% to $11.98.

-- 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
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!
SYM TRADE IT LAST %CHG
GLD $113.05 -1.40%
ABX $12.67 0.24%
NEM $25.43 8.40%
AAPL $132.11 1.90%
FB $81.59 -1.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs