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 Bounces Off Fresh Year Low Exiting Dismal 2013 (Update 1)

Stocks in this article: GLD IAU SGOL

Updated from 9:15 a.m. ET with price swing and trader comments

NEW YORK (TheStreet) -- Gold prices were retracing from early morning losses on Tuesday, reclaiming a key level of price support as investors cheered the yellow metal on the final day of a dismal trading year.

Gold for February delivery at the COMEX division of the New York Mercantile Exchange was adding $3.20 to $1,207 an ounce. The gold price traded as high as $1,214 and as low as $1,181.40 an ounce, while the spot price was increasing $8.40, or 0.7%.

Gold prices tumbled more than $20 at one point in morning trading, but a round of so-called short covering brought buyers back into the market to support the price back near $1,200 an ounce -- a level that technical analysts say is key for gold to hold in order to avoid a big selloff.

"Once we attained a level under $1,200 we made a new low for the year, and certainly saw a volume spike down this morning," Eric Zuccarelli, an independent metals trader, said in an interview. "Unfortunately, most everybody did get short at those levels, and the market is unforgiving at times ... and we had a nice little $30 pop out of that area."

Gold has tumbled more than $450, or 28%, in 2013 as a market crash in April and concerns that the Federal Reserve would scale back its economic stimulus program. The Fed reduced so-called quantiative easing in mid December -- a move that is seen as anti-inflationary. Many market participants buy gold as an asset hedge against inflation.

Silver prices for March delivery were decreasing 10 cents to $19.52 an ounce, while the U.S. dollar index was adding 0.09% to $80.08.

Gold mining companies were moving higher, in-line with gains in gold futures. Barrick Gold was up 2.1% to $17.46 a share. 

Gold ETF SPDR Gold Trust GLD was up 0.78% to $116.30, while iShares Gold Trust IAU was off 0.78% to $11.69. The GLD is one of the most commonly followed gold-backed ETFs and has played a role in significantly shifting the price of so-called paper gold prices in 2013. The ETF is down more than 28.2% year-to-date.

-- 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