Gold Prices in Fight to Retain $1,150
(Gold brief updated with recent metals & mining stock price movements. )
NEW YORK (
) --
Thursday were slipping from their $1,150 resistance area on renewed Greek debt fears and a stronger U.S. dollar.
Gold for June delivery was falling $1.10 to $1,151.90 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,151 and as low as $1,144.40 Thursday. The
was adding 0.17% to $81.75. Gold's spot price was adding $4.40, according to Kitco's gold index.
Gold Prices Have More to Prove
Greece is still struggling to raise money, and a lack of market confidence has pushed yields on government bonds to new highs.
Greece's 10-year yield
is 7.48%, which is more than 400 basis points higher than Germany's. If the country is forced to borrow money at such a higher rate, it will cap Greece's ability to significantly and sustainably reduce its debt burden.
The struggle weighed on the euro, boosted the U.S. dollar and hurt gold prices. Gold did find some support from the Bank of England and the European Central Bank as both held interest rates at record lows of 0.5% and 1%, respectively.
Gold is up over 5% year to date with significant gains coming in the last week of trading. The precious metal has been making all-time highs in euro terms and, on occasion, has even bucked its inverse correlation to the U.S. dollar. On Wednesday, gold broke through $1,150 an ounce, which was pegged as a key resistance area for prices, and the run-up was triggering mild profit-taking.
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"Gold may look to base build around the $1,145 level short-term," says James Moore, analyst at
thebulliondesk.com
in his daily metals report. "However, we expect sentiment to remain bullish with gold on course to challenge the year's high of $1,162.10 and potentially the $1,200 level."
Many analysts are eyeing $1,160 as the next resistance area if gold prices are able to settle above $1,150 for multiple sessions.
were down 12 cents to $18.08 with copper losing a penny to $3.59.
Mining stocks, a more leveraged way to
, were tentative after a big rally Wednesday.
Barrick Gold
(ABX)
was trading at $41 while and
Newmont Mining
(NEM) - Get Newmont Corporation Report
was at $53.80. Other large-cap miners such as
Kinross Gold
(KGC) - Get Kinross Gold Corporation Report
and
Goldcorp
(GG)
were trading at $18.30 and $40.10, respectively.
Shares of
Freeport McMoRan Copper & Gold
(FCX) - Get Freeport-McMoRan, Inc. Report
were trading at $85.40 while
Agnico-Eagle Mines
(AEM) - Get Agnico Eagle Mines Limited Report
was at $59.80.
The popular physically backed ETF,
SPDR Gold Shares
(GLD) - Get SPDR Gold Shares Report
was up slightly to $112.90. The ETF added almost 1 ton on Wednesday as investors bought the precious metal.
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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.
