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
TheStreet Open House

Gold Prices Dip Amid Profit-Taking as Ukraine War Possibilities Rise

NEW YORK (TheStreet) -- Gold prices were dipping on Tuesday as uncertainties continued about the ongoing developments in Ukraine, while the U.S. trade deficit narrowed.

Gold for June delivery at the COMEX division of the New York Mercantile Exchange was dipping $3.30 to $1,306 an ounce. The gold price traded as high as $1,314.30 and as low as $1,304.40 an ounce, while the spot price was slipping $2.80, or 0.21%.


WATCH: More market update videos on TheStreet TV | More videos from Joe Deaux

Germany's foreign minister, Frank-Walter Steinmeier, warned Tuesday morning that Ukraine was "close to war," according to reports. The news, which is adding support to gold as a safe-haven purchase, came before the U.S. trade deficit in March narrowed by 3.6% to $40.4 billion, the Commerce Department reported.

"Any news that comes out of the Ukraine scares the shorts out; so, fundamentally with all the economic data there's a lot of pressure on [gold]," Tom Vitiello, principal at Aurum Options Strategies, said in an interview.

Physical gold purchases declined in April from March as investors bought smaller amounts of the yellow metal to add to their portfolios. BullionVault's gold investor index hit 52.8, a signal that the market has more buyers than sellers, for the month. BullionVault is an online service to buy and sell gold and silver.

"We're definitely seeing more buyers, but they're buying smaller amounts," Miguel Perez-Santalla, vice president of BullionVault, said in a phone interview from New York. "I've lived through this before; this could last maybe a couple years -- this could go on a long time," Perez-Santalla said of gold's trading range since the metal's collapse in April 2013.

Silver prices for July delivery were gaining 6 cents to $19.64 an ounce, while the U.S. dollar index was dropping 0.49% to $79.12.

Gold miners were mostly lower on Tuesday. Shares of Kinross Gold (KGC) were dropping 0.85%.

Gold ETF SPDR Gold Trust (GLD) was sliding 0.3% to $125.84 a share, while iShares Gold Trust (IAU) was off 0.38%.

-- 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!

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