Gold Price Down on Dollar Rally - 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 Price Down on Dollar Rally

blog | Published On by
Gold Price Down on Dollar Rally

Spot gold prices are down 1.75% in early New York trading, as the dollar stays strong despite a poor non-farm payrolls report Friday. Oil prices are off their highs this morning, on news that a shift in the high winds are helping firefighters keep the Ft. McMurray wildfire away from Alberta tar sands mines.

Speculators jumping out of gold this morning have scrambled some forecasts Friday that gold was about to make another run at $1,300. What has probably caught gold traders wrong-footed is the fact that the dollar did not react as expected after Friday's non-farm payroll report took June off the table for a Fed rate hike.

At 10am, spot gold is trading down $22.30, to $1,265.40. June gold futures are down $28.90.

The gold price is bouncing from the  morning low of $1,260, which should be first support. If that breaks, the next substantial support is $1,260. First resistance is $1,272, then $1,276.


The big news Friday was of course the non-farm payrolls report, which came in far below expectations. Conversely, these bad report also took away expectations that the Fed would raise interest rates next month, which was positive for stocks.

Wall St. spent most of the day in the red, but managed to recover slightly into the close. Despite a positive close, the S&P 500 fell 0.4% on the week, for a second week of losses in a row.

Oil prices benefited from early weakness in the dollar, and worries that the Alberta wildfires would spread into the tar sands operations nearby. However, Friday's 0.8% gains for both WTI and Brent were not nearly enough to erase weekly losses. WTI futures were down 2.7% on the week, while Brent was savaged. It closed down 4.2% for the week. giving up a four-week weekly winning streak

Gold futures closed for the weekend just as prices were hitting daily highs. June gold gained $21.70 (1.7%) to close at $12.94 an ounce. This helped paper gold log a slight weekly gain of 0.3%.

Spot gold closed Friday in the middle of the day's trading range, at $1,287.70, up $10.10 (0.79%.)

In international news, the Greek parliament passed new austerity measures that will reduce government pension plans and raise taxes. Socialist Prime Minister Alex Tsipras has seen his majority in the Greek parliament shrink to just three seats. It was those three seats that enabled these most recent austerity measures to pass -- 153-147.

A big, shake-up in Saudi Arabia occurred Saturday, when long-time Saudi oil minister Ali al-Naimi was relieved of his post. His successor is chairman of the state-owned oil company Aramco, Kalid al-Falih.

Saudi oil minister Saudi oil minister Ali al-Naimi

The 81-year old al-Naimi, perhaps the most respected oil minister in the world, ran afoul of Deputy Crown Prince Mohammed bin Salman for agreeing to exclude Iran from needing to sign the Doha accord to cut production. This led to an embarrassing situation when bin Salman decreed the night before the meeting that Saudi Arabia would not sign the agreement if Iran did not.

al-Falih, who takes over the post of oil minister, is also considered a very wise and intelligent man. He has had dealings with many men in the upper echelons of the global oil community, but perhaps the most important factor in his ascent is that he is loyal to Prince bin Salmon.The 30-year old bin Salman, who is second in line to the throne, has been putting capable, but loyal, men in high positions as he consolidates his power.


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

Steven Cochran

Precious Metals Market Analyst
BS University of South Florida (2002)

A published writer, Steven's coverage of precious metals goes beyond the daily news to explain how ancillary factors affect the market.

Steven specializes in market analysis with an emphasis on stocks, corporate bonds, and government debt. He writes a monthly review of the precious metals markets for

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.