NEW YORK (
were sinking dramatically Friday as uncertainty about the economic recovery and U.S. dollar strength spooked commodity investors.
Gold for February delivery was falling $13 to $1,130 an ounce at the Comex division at the New York Mercantile Exchange. Gold prices have traded as high as $1,146 and as low as $1,126.50. The
was rising 0.57% to $77.22 on the back of a weak Euro. The Euro was flailing on fears over Greece's budget crisis and that resulting money constraints would reverberate throughout Europe.
Is Gold's Sell Off Scary?
continues as investors look for signs that central banks could raise interest rates sooner than expected. Another variable for prices are possible position limits on gold and silver contracts. The U.S. Commodity Futures Trading Commission could require these limits when it meets in March. Analysts are mixed on what this will do to gold's spot price.
"It's a big deal," says David Morgan, founder of Silver-Investor.com. "
Some analysts think that with position limits in both gold and silver, prices will go far higher. Personally I'm not that certain...
Current gold volatility is just position trading...uncertainty is becoming more and more of a factor
for prices....I'm still looking at $1,150...to somewhat hold and go higher, but if it doesn't, the big break for me, as I've said before, is the $1,000 level."
were falling 22 cents to $18.43 while copper was down 2 cents to $3.36.
Mining stocks, a more leveraged way to
, were struggling along with broader equities. Large-cap miners,
were down over 2% to $39.47 and $47.19, respectively. Shares of
were down 2.65% to $80.96 even after
upgraded the stock to outperform from market perform.
was the biggest loser, down 5.56% to $19.19. The company offered preliminary 2009 and 2010 gold production guidance that was in line with expectations. Shares of
Freeport McMoran Copper & Gold
were flat at $84.65.
was down 3.67% to $11.43.
SPDR Gold Shares
was down 1.15% to $110.71. The popular physically backed ETF lost over 2 tons Thursday as investors take profits. One analyst theory is that silver and gold ETF interest will drop slightly after the introduction of the U.S. physically backed platinum and palladium ETFs, from
, as investors take advantage of these riskier plays on the precious metal sector.
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.