Gold Prices Climb on Weaker U.S. Dollar

Gold prices rose on Thursday as the US dollar weakened against the euro. Silver prices were also up as metal prices shrugged off a week-long slump amid positive jobs reports. Investors feel this good news could signal a move by the Fed to end quantitative easing sooner rather than later.

By Joe Deaux
10/11/12 - 10:26 AM EDT
The Street

NEW YORK (TheStreet) -- Gold prices were rising Thursday as the U.S. dollar weakened against the euro.

Gold for December delivery was adding $3.70 to $1,7688.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,776.60 and as low as $1,760.20 an ounce, while the spot price was gaining $3.90, according to Kitco's gold index.

Standard & Poor's knocked down Spain's debt rating by two notches late Wednesday, but the euro was ignoring that news and investors continued to be optimistic about the possibility of a bailout for the country.

"The S&P announcement on Spain probably has a lot to do with the return to the rally tracks," Chuck Butler, president of world markets at EverBank, wrote Thursday in a note.

Silver prices for December delivery was up 2 cents at $34.13 an ounce, while the U.S. dollar index was lowering 0.39% to $79.79.

Gold was also shrugging off a week-long slump despite the better news that weekly jobless claims declined 30,000 for their biggest drop since July.

Investors have felt that good news in the labor market could signal a move by the Federal Reserve to end its open-ended, mortgage-backed securities purchasing program -- known as quantitative easing -- sooner rather than later. Despite last Friday's surprise drop in the unemployment rate and Thursday's decline in claims, gold is not seeing a charge toward the lower end of its current trading range.

"As discussed recently, I was cautious to short term bearish on gold based on overbought sentiment mainly. If it can hold 1753, it has a chance to spring back over 1800," David Banister, chief investment strategist at Active Trading Partners, wrote in an email.

The euro was climbing to $1.2939 against the greenback, ahead of its prior day close at $1.2876.

Gold mining stocks were mostly higher Thursday. Shares of NovaGold Resources (NG) were up 2.2%, while shares of Agnico-Eagle Mines (AEM) were adding 1.9%.

Among other mining stocks, Kinross Gold (KGC) was rising 0.86%, and Barrick Gold (ABX) was up 0.17%.

Gold ETFs SPDR Gold Trust (GLD) and iShares Gold Trust (IAU) each were increasing 0.47%.

To see original article CLICK HERE

Follow Us

Share Page


Weekly Charts

Current Spot Prices


Special Offers

© 2017 Swiss America Trading Corp. All Rights Reserved.   |   Privacy Policy   |   Site Map   |   Contact Us   |   Mobile Version
SWISS AMERICA and Block Logo are registered trademarks of Swiss America Trading Corp.
Where did you hear about us?
Pat BooneMichael Savage
OtherWayne Allyn Root
Jason StapletonChristopher Greene (AMTV)
Ron DouglasJoe Walsh