Gold Prices Look to Regain $1,100
NEW YORK (
) --
were clawing their way back to the $1,100 area as the U.S. dollar fell.
Gold for April delivery was rising $4.40 to $1,093.20 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,095.60 and as low as $1,085.50. The
was slipping 0.31% to $81.73. Gold's spot price was up over $5, according to Kitco's gold index.
The
euro was stalling out Thursday
providing a support for gold prices. The currency hit a 10-month low on Wednesday as European sovereign debt fears attacked the currency providing more upside to the dollar, which pressured gold. The EU begins its two-day summit today, and many analysts are hoping for some sort of resolution to potential eurozone default. Fitch lowered Portugal's rating to AA- with a negative outlook highlighting the fact that Greece isn't the only country with serious debt problems.
If the EU doesn't come to the rescue, Greece and other nations could have to look to the IMF for aid. Germany seems open to the idea, while France wants to keep the solution internal. Either way, the euro could see some long-term downside. An EU-procured bailout has many analysts anticipating inflation but an IMF solution could cause further euro debasement.
The currency has already lost 14% of its value since December. As uncertainty rocks the markets, many analysts expect gold to stay in a tight trading range around the $1,100 area and the
U.S. dollar
to continue its uptrend.
Mohammed Isah, technical strategist at FXTechstrategy.com, predicts that
gold prices will test the $1,079.08
level.
"Gold still retains its broader medium-term uptrend bias ... however, should that strong support level break, a technical damage will be caused and further weakness will be expected towards the $1,044.20 level, its 2010 low." Although bargain hunting has supported prices around $1,090, gold needs to gain momentum from that level to climb another leg higher. "A clean break and close above the $1,133.18, its March 17 high, is required to open the door for more upside gains towards $1,144.88
and higher."
were adding 17 cents to $16.81 while copper was relatively flat at $3.34.
Mining stocks, a more leveraged way to
, were mixed.
Barrick Gold
(ABX)
was trading at $37.24 while
Newmont Mining
(NEM) - Get Report
was lower at $49.72. Other large-cap miners
Kinross Gold
(KGC) - Get Report
and
Goldcorp
(GG)
were trading at $16.94 and $37.36, respectively.
Shares of
Freeport McMoRan Copper & Gold
(FCX) - Get Report
were lower at $79.79, while
Yamana Gold
(AUY) - Get Report
was trading at $9.83.
Shares of
SPDR Gold Shares
(GLD) - Get Report
were rising 0.77% to $107.12.
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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.
