Gold Erases Early Losses But Dollar Remains Strong - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Gold Erases Early Losses But Dollar Remains Strong

blog | Published On by
Gold Erases Early Losses But Dollar Remains Strong

Gold rebounded from its lowest level of 2018 this morning, weighed down by a continuing rally for the dollar.

Spot gold traded at $1,287/oz, up from its lows around $1,280. Spot silver relinquished earlier gains to hold flat at $16.42/oz, but futures pointed higher.

Palladium rose $9 (+0.9%) to $970/oz. However, platinum dipped about 0.35% (-$3) to trade near $880/oz.

Trade War With China Pauses, Dollar Still Hot

Markets reacted positively to news that trade tensions between China and the U.S. appear to be cooling.

Washington has been sending conflicting messages about the situation, resorting to a kind of "good cop, bad cop" dynamic.

Nonetheless, it appears that both sides are content to put any tariffs "on hold" while negotiations move forward.

U.S. stocks moved sharply higher Monday after the Dow Jones ended completely flat on Friday. All three indices gained about 1% in the first hour of trading.

The Nikkei 225 closed 0.3% higher last night, although Tokyo's other main index fell slightly. Shares rose 0.6% in Hong Kong and 0.5% in Shanghai.

dollar rallyA weaker pound helped lift the FTSE 100 in London by 0.75%. France's CAC 40 was also 0.55% higher, but the DAX in Germany slipped 0.3% into the red.

The dollar was up again as the DXY index added 0.1% to 93.7.

Since the beginning of last month, the dollar has gained 4% against its major peers. Yet the stronger currency could place a drag on equities.

Currencies Lose Ground, Election in Venezuela Criticized

Most foreign currencies took a hit due to the dollar's strength.

The euro was roughly unchanged, holding just above $1.175. The Japanese yen was off 0.4% to ¥111.25 per dollar, and the British pound was also lower, trading just above $1.34.

There are reports that the U.K.'s Conservative party may hold new parliamentary elections later this year. Disagreement over how to handle Brexit continues to plague the current government.

Meanwhile, Nicolás Maduro was re-elected as president of Venezuela yesterday. While the country has been ravaged by an economic crisis, Maduro has taken measures to solidify his hold on power.

Officials from across the Americas as well as Europe condemned the vote as a farce, citing numerous questionable tactics used by pro-Maduro groups. Less than half of eligible voters turned out for the election.

Several countries indicated they would downgrade diplomatic relations with Venezuela. The U.S. threatened sanctions on the country's oil industry.

The crude oil benchmarks were both up on Monday. WTI rose 0.5% to about $71.65/bbl and Brent crude reversed losses to return to $78.55/bbl.

Bonds fell modestly as the 10-year Treasury yield moved one basis point higher to 3.07%.


The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.