Updated from 12:22 p.m. ET with settlement prices
NEW YORK (TheStreet) -- Gold prices jumped on the first trading day of 2014 as investors viewed the metal as a cheap purchase after it dipped below a key price level to close out 2013.
Gold for February delivery at the COMEX division of the New York Mercantile Exchange climbed $22.90 to settle at $1,225.20 an ounce. The gold price traded as high as $1,230.80 and as low as $1,202.50 an ounce, while the spot price was unchanged at $1,223.79.
"I think more it's just bargain buying," Miguel Perez-Santalla, vice president of business operations at BullionVault, said in an interview. "[Traders] came in and saw it was cheap -- it started in Europe, they started buying and it rallied up today."
Gold prices fell more than 28% in 2013 as a record year in stocks, bank downgrades of the yellow metal and the Federal Reserve's pullback in economic stimulus rotated investors out of the asset.The price fell below $1,200 an ounce on Tuesday -- but settled little changed -- as traders squared away books for the end-of-year and end-of-quarter accounting. That price level has been a key level of technical support -- the market repeatedly has tested breaking below $1,200, but has failed to stay below that price. Silver prices for March delivery gained 76 cents to $20.13, while the U.S. dollar index was increasing 0.52% to $80.63. Gold mining stocks were mostly higher on Thursday. Shares of Newmont Mining (NEM) were rising 4.2% to $23.99. Gold ETF SPDR Gold Trust (GLD) was up 1.6% to $118, while iShares Gold Trust (IAU) was adding 1.5% to $11.86 a share. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV