Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold slid for a sixth session, dropping 0.4% to close under $1,224, as rising oil and upbeat news about Greek debt helped to spur risk appetite, reducing demand for safe-haven assets.

Brent crude jumped 2.3% to close near $50, the highest level since early October, after the Energy information Administration reported U.S. oil supplies fell by 5 million barrels last week. Recent supply disruptions in Canada, Libya, and Nigeria contributed to the unexpectedly large drawdown, helping prices rise around 85% since the mid-February low.

Fueled by gains in energy stocks, Wall Street rallied for a second session, with the Dow adding nearly 1% and the S&P 500 picking up 0.7%. The indexes also received a boost from rising financial and banking shares as speculation grows that the Fed may raise interest rates in June or July. Higher rates tend to boost the bottom line of banks and other lenders.

The IMF and ECB reached a deal to unlock another tranche of aid to Greece, finding that the beleaguered nation has made adequate reforms to its economy. The new funds will prevent Greece from defaulting when big redemptions from earlier bailouts come due in July.

Eurozone stocks and the euro jumped higher on the Greek debt news, aided by reports that Germany's GDP accelerated by more than expected in Q1. The rising euro helped to stall the dollar's recent Fed-inspired rally as the ICE dollar Index fell around 0.2%.

The other precious metals were mixed, with silver adding 0.4% while platinum and palladium lost around 1% each.

At the Comex close: June gold fell $5.40 to $1,223.80; July silver added 8 cents, to $16.33; July platinum dropped $10.40 to $993.80; and September palladium lost $5.65 to $533.15 an ounce.