Gold Prices Retreat on Dollar, Oil 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 Prices Retreat on Dollar, Oil Rally

blog | Published On by
Gold Prices Retreat on Dollar, Oil Rally
balance of gold and dollar

Gold is seeing selling pressure this morning after gaining nearly $16 in yesterday's rally. A rush into gold and Treasuries was triggered by a sell-off in stocks. June gold futures are down $8.30 and spot gold is down $10.00 at $1,221.20.

The oil market is seeing short-covering up from one-month lows on a drawdown of US crude stockpiles and hopes that the April 17 meeting of oil exporters in Qatar may actually accomplish something.

First support for gold is seen at $1,215, then $1,209. First resistance is $1,224 then $1,229

oil market

A rally in oil futures this morning has helped European stocks and the US dollar. Yesterday, the American Petroleum Institute reported a surprise 4.3 million barrel drawdown in US crude supplies, as refineries come back online from spring maintenance. Oil prices were further helped when Kuwait's oil minister told reporters that he thought a production freeze among oil producers could be agreed upon, even if Iran did not attend.

At 10:30, the US Energy Information Agency reported that crude stockpiles last week fell by 4.9 million barrels. This was more than the industry trade group API had reported at -4.3 million barrels, and more than the 3.15 million barrel draw expected by analysts.


The euro is down after its best quarter in five years, on news that IMF managing director Christine Legarde and German chancellor Andrea Merkel publicly disagreed over the need for debt forgiveness of Greece. The IMF says that there is no way that Greece can recover without debt forgiveness. It refuses to sign on for another loan to Athens without that debt forgiveness. Merkel, speaking for Germany, said that debt forgiveness was out of the question.

The dollar, which had rallied from a 17-month low against the yen overnight, erased its gains this morning ahead of the FOMC minutes despite the weakness in the euro.

The big news of course is the FOMC meeting minutes to be released at 2pm today. With stocks bracing for a disappointing earnings season, the Fed may be the biggest mover for the markets in the near term. Fed Chair Janet Yellen appears in a roundtable discussion tomorrow night with former Fed chiefs Ben Bernanke, Alan Greenspan and Paul Volcker. The minutes from the latest ECB meeting will be released Thursday morning.

Worries over the ECB pushing benchmark interest rates deeper into negative territory was highlighted in a $3.7 billion auction of 2-year German bonds. These bonds were sold at a yield of -0.48%. Unless you're a fund manager or a bank needing to park money in cash equivalents, one has to wonder why aren't investors buying gold instead?


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.