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

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.

Must Read: Tuesday, December 31: Today in Gold and Silver

>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
GLD $123.65 0.00%
IAU $12.48 0.00%
SGOL $126.01 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs