Gold Trades Sideways as Dollar Strengthens (Update1)
NEW YORK (TheStreet) -- Gold prices traded sideways Friday as the U.S. dollar strengthened a day after a big drop.
Gold for December delivery settled up 20 cents to $1,619.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,623 and as low as $1,613.30 an ounce, while the spot price was up $2, according to Kitco's gold index.
"I don't think you're going to see a whole lot of action until you get through the summer, past Labor Day weekend," said Oliver Pursche, co-portfolio manager at GMG Defensive Beta Fund. "There just doesn't seem to be enough activity in any investment arena right now to drive prices in a meaningful fashion."
The Federal Open Market Committee releases its minutes next Wednesday, and central bankers meet at the Jackson Hole summit on Aug. 31 and Sept. 1, but some analysts aren't optimistic about any Fed stimulus.
"I don't think we're going to hear much as far as confirmation of any stimulus out of the Fed come Jackson Hole," said Steve Ayer, managing director of HighTower. "How can they? The stock market is right at its high, the election is a few months away."
Gold prices didn't receive a massive bump earlier this week after the 13F filings of billionaire investors George Soros and John Paulson showed each significantly increased their positions in the precious metal. While those investments suggest both Soros and Paulson expect some form of Fed stimulus is on the horizon, investors Jeffrey Vinik and Eric Mindich both dumped their holdings in SPDR Gold Trust.
For now, gold appears to be stuck in a range until central banks signal any policy changes.