NEW YORK ( TheStreet ) -- Gold prices were volatile Thursday but were able to eke out a gain after Greece secured a debt deal and as the Bank of England pumped more money into the system. Gold for April delivery added $9.90 at $1,741.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,755.50 and as low as $1,728.30 an ounce while the spot price was down $5, according to Kitco's gold index. Silver prices ended 21 cents higher at $33.91 an ounce while the U.S. dollar index was 0.15% lower at $78.57.
"The reality is is that it's all about the euro," says Streible, "with the fragile state all of Europe is in right now, any sign of quantitative easing, or QE, is probably too little at this point ... more types of stimulus plans means more spending cuts are soon to follow." More stimulus can trigger a rush into gold as a hard asset, an alternative to the paper currency being devalued, but austerity measures bring in the deflation worry, where gold tends to selloff initially.
-- Written by Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel.