Gold Price Drops as Oil Rally, ECB Stimulus Lift Stocks

Gold Price Drops as Oil RallyThe gold price retreated on Friday, after hitting a fresh one-year high, as higher oil prices and the ECB stimulus measures helped U.S. stocks to move sharply higher.

Gold of April delivery dropped 1.1% to $1,258.80 a troy ounce at 11:15 a.m. on the Comex division of the New York Mercantile Exchange. The contract had hit a new 52-week high of $1,287.80 earlier in the session.

The three U.S. stock indexes rose more than 1% in morning trades. The S&P 500 advanced 1.4% to 2,016. The 30-member Dow Jones Industrial Average gained 1.3% to 17,208, while the tech heavy NASDAQ was up 1.4% at 4,726.

Wall Street gained as investors reassessed the impact of the European Central Bank’s (ECB) latest stimulus measures and the health of the U.S. economy, the world’s largest.

The ECB on Thursday outlined a broad package of easing measures, including a cut to key interest rates and an expansion of its asset-purchase program. ECB President Mario Draghi said the central bank may not reduce rates further.

West Texas Intermediate crude for April delivery rose 2.1% at $38.71 a barrel on the New York Mercantile Exchange. The U.S. oil benchmark rose after an international energy monitor said the market rout of the last two years may have finally bottomed out.

In mining stocks, Toronto, Canada-based Barrick Gold Corporation (NYSE:ABX) surrendered 0.6% to $14.08. U.K.-based Randgold Resources Ltd. (NASDAQ:GOLD) skidded 1% to $90.76.

SPDR Gold Trust  (ETF) (NYSEARCA:GLD) gave up 0.9% to $120.42. Holdings in the world’s largest gold-backed exchange-traded fund rose to 25.68 million ounces on Thursday, the highest since August 2014.

Elsewhere in metals, the silver price inched up 0.5% to $15.63 a troy ounce. Copper for May delivery rose 1.5% to $2.25. April platinum declined 0.9% to $966.30, while palladium added 1.2% 581.25.

Over the past five sessions, gold, silver, platinum and copper have all been in red territory. Palladium, on the other hand, has gained 3.2%.