(Gold brief prices updated)
NEW YORK (
Monday had fallen below $1,200 after the
to Greece and other eurozone countries prompted investors to sell gold and buy stocks.
Gold for June delivery was slipping $9 to $1,201.40 an ounce at the Comex division of the New York Mercantile Exchange Monday afternoon. The gold price Monday has traded as high as $1,207 and as low as $1,184.40. The
was falling over 1% to $83.53 as the
euro rallied off of its 14-month low
and traded at $1.29 vs. the dollar. The spot gold price Monday was down over $13, according to Kitco's gold index.
Investors were taking some profits in gold after
and as the EU took aggressive measures to fight ballooning sovereign debt in eurozone countries. The
combines efforts from the European Commission, eurozone countries and the International Monetary Fund to support the euro and poorer EU countries at risk for default like Greece, Spain and Portugal. The European Commission will contribute $75 billion, the 16 eurozone countries will ante up $750 billion and the International Monetary Fund will contribute at least $37 billion.
The European Central Bank will also lend eurozone countries money by buying bonds and the
is reopening its swap lines so central banks can pump dollars into local banks. This aggressive bailout, which was more than the Troubled Assets Relief Program, sent the
Dow Jones Industrial Average soaring over 400 points
as investors bought risky equities and sold out of safer assets like gold. A lot of investors had short positions heading into the weekend as no one wanted to invest heavily in stocks, but preferred to bet against the market with Greece riots continuing to make headlines. On Monday, investors had to raise cash to buy back their shorted stock by selling some of their precious metal positions.
Many analysts expect gold prices to stay in a narrow trading range and re-test the $1,180 level but anticipate strong buying as investors buy gold at discount levels.
"I think some profit-takers come in but
the gold price should hold up," says Scott Redler, chief strategic officer of
. Redler thinks ultimately gold will hit $1,300 - $1,400 and looks at selloffs as buying opportunities. "If the $1,180, $1,190 hold during this 'down day' you better believe the next move on gold will be through those old highs and we will be seeing a lot higher prices in the coming months."
More on Gold
Greek Gold: Collateral on Bailout Money?
were up 11 cents to $18.57 while copper prices were popping 8 cents to $3.23. Silver took some spotlight from gold after a report from the
New York Post
that Federal officials are launching a criminal and civil probe into
to determine if the investment bank tired to
. David Morgan, founder of
, said it's unclear how significant this probe will be to silver prices, but he thinks silver can outperform gold by 30% over the long term.
Gold mining stocks, a more risky but more profitable way to
, were mixed.
was rising 2.2% to $43.74 while
was adding 3.3% to $55.16. Other large-cap miners
were trading higher at $17.42 and $43.39, respectively.
were rising 2.1% to $5.79 despite the stock receiving a downgrade from buy to hold at
was rising to $41.48 while
was up slightly to $10.69.
Shares of the gold ETF,
SPDR Gold Shares
were down 0.6% to $117.59. The ETF added almost three more tons on Friday as investors fled into gold.
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.