Updated includes new futures, stock prices
NEW YORK (
) -- Gold futures were lower Tuesday, as the dollar traded mixed against the euro and yen.
Gold for December delivery was trading down $2.90 to $1,039.90 an ounce at the Comex division at the New York Mercantile Exchange. The contract has traded as low as $1,032.90 and as high as $1,044.30. The precious metal was trading well above is $1,025 support level.
Silver for December delivery was down 23 cents to $16.86 while copper prices remained relatively unchanged at $3.00.
Gold Will Rebound
When the U.S. dollar strengthens, gold, which is priced in dollars, becomes more expensive to buy. On Monday, the dollar rallied off a 14-month low vs. the euro, pummeling gold futures.
"The dollar hit extremely oversold levels and we saw somewhat of a natural bounce back in the dollar" says Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund. "On the positive side though, it looks like the dollar rebound didn't breach the strong down trend that we're seeing ... accordingly we saw gold pull back, but still above the technically important level of $1,025."
SPDR Gold Shares
was off 9 cents $101.95 a share.
Gold stocks took a beating Monday, along with the broader equity market, and many were trading slightly lower on Tuesday . Shares
Freeport-McMoRan Copper & Gold
were off $1.10 $78.41, while
was 8 cents lower to $11.18. Shares of
were both moving higher, at $43.59 and $36.54, respectively.
was sinking 4.5% to $19.45. On Monday, the company lowered its 2009 production guidance after reporting a lower than expected production rate for its Paracatu project in Brazil.
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.