Gold Prices Stall
NEW YORK (
) --
were slipping as investors took profits and the U.S. dollar rallied.
Gold for April delivery was falling $9.90 to $1,133.40 at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,142.30 and as low as $1,125.90. The
was rising 0.69% to $80.55.
Gold Looks To Jobs Report
The euro came under pressure after the
announced its decision to keep key interest rates low. The U.S. dollar rallied off of euro weakness, which weighed on gold prices. Investors are staying cautious headed into Friday's U.S. nonfarm payroll report. Weekly initial jobless claims shed 29,000 claims last week, which was in line with expectations, and the
Labor Department
also said that productivity grew 6.9% in the fourth quarter. Both of these items are relatively encouraging signs headed into Friday's number.
Gold's future Friday is mixed. A positive employment reading could prompt the
to raise interest rates sooner than expected, which would be a negative for gold. On the other hand, a negative reading will curb investors' risk appetite for commodities and pressure the precious metal but might also have the adverse effect and increase gold's appeal as a safe-haven asset.
Gold prices were also held hostage by Greek debt fears. Greece said it would issue new 10-year government bonds a day after the government announced tax hikes and spending cuts totaling $6.5 billion. But the EU is still hesitant to issue aid, and the uncertainty creates volatility for the euro and gold.
"The range is fairly narrow this morning between $1,132 and $1,142 on the spot side of the market," says Jon Nadler, senior analyst at Kicto.com. "Resistance remains manifest around the $1,162 area, which really needs to be overcome ... and if
it is taken out successfully we can hope for higher."
were down 9 cents to $17.23 while copper prices were sinking 6 cents to$3.37.
Mining stocks, a more leveraged way to
, were lower.
Barrick Gold
(ABX)
was down 0.75% to $39.84, while
Newmont Mining
(NEM) - Get Report
was falling 2.68% to $50.56. Other large-cap miners
Kinross Gold
(KGC) - Get Report
and
Goldcorp
(GG)
were trading down at $18.87 and $39.68, respectively.
Shares of
Yamana Gold
(AUY) - Get Report
were down 4.58% to $10.63 after the company reported adjusted EPS of 14 cents on revenue of $399.8 million, which was slightly below expectations.
Freeport McMoRan Copper & Gold
(FCX) - Get Report
was down 0.54% to $78.81.
SPDR Gold Shares
(GLD) - Get Report
were lower by 0.69% to $110.99. The ETF added another 3.96 tons on Wednesday as investors bought gold as an alternative asset.
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--
Written by Alix Steel in New York
.
Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.