Gold Prices Tumble by Double Digits
NEW YORK (
) --
were slipping by double digits despite a weaker U.S. dollar.
Gold for April delivery was falling $9.40 to $1,098.20 an ounce at the Comex division of the New York Mercantile Exchange. Gold prices Monday have been as high as $1,108.60 and as low as $1,092.10. The
was slipping 0.12% to $80.66. Gold's spot price was down mroe than $9.20, according to Kitco's gold index.
Persistent fears on Greek sovereign debt were weighing on the euro and pressuring gold prices.
German Chancellor Angela Merkel
announced over the weekend that the EU shouldn't put a Greek bailout plan on the table at Thursday's summit. Merkel also said the Greek Prime Minister George Papandreou has said that Greece would not ask for EU support.
Ignore Gold's Volatility
The EU had previously announced a multibillion euro bailout of Greece, but details had remained sketchy. If the EU doesn't come to Greece's aid, then the country might have to turn to the IMF for funding. The uncertainty has been dominating gold prices as they look to the euro for direction.
Some analysts are shrugging off recent volatility and using any dip around $1,100 an ounce as a buying opportunity. "Ten dollars on a $1,100 gold price is the same as 10 cents on an $11 stock ... I don't think that this kind of variation ... is any big deal," argues J.C. Doody, editor of goldstockanalyst.com. "We're still printing money like there is no tomorrow." Doody thinks that Obama's health care reform bill could be a long term catalyst for gold. "
Health care affects
gold from a monetary asset ... in the bigger picture ... to pay for all of these things we're obviously going to have to borrow more money ... gold is the escape mechanism."
were slipping 13 cents to $16.90 while copper was flat at $3.37.
Mining stocks, a more leveraged way to
, were struggling.
Barrick Gold
(ABX)
was down 0.61% to $39.18.
NovaGold
(NG) - Get Report
was adding 1.63% to $7.49 after the company announced that Donlin Creek gold reserves increased by 4.3 million ounces. NovaGold partners equally with Barrick Gold at Donlin.
Other large-cap miners
Kinross Gold
(KGC) - Get Report
was lower by 0.89% to $17.73, while
Goldcorp
was down 1.47% to $38.30.
Newmont Mining
(NEM) - Get Report
was up slightly to $51.06.
Shares of
Eldorado Gold
(EGO) - Get Report
were sinking 2.42% to $12.51 despite an upgrade from TD Newcrest from hold to buy.
The popular physically backed ETF
SPDR Gold Shares
(GLD) - Get Report
was falling 0.59% to $107.64.
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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.