AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
1/2/2019: Gold gains on growth concerns
Source: Bill Musgrave, American Gold Exchange
Austin — Gold gained 0.2% to close above $1,284, the highest level since mid-June, as slowing global growth undermined equities and boosted demand for safe havens.
China's manufacturing activity fell into contraction in December, with the official PMI hitting the lowest point in more than two years. Demand for Chinese exports has fallen under pressure from trade wars with the US and slowing economic momentum in Japan and the Eurozone.
US manufacturing is also losing momentum. The HIS Markit PMI survey for December fell to the lowest level in 15 months, with optimism among senior executives hitting the lowest point in two years behind rising concerns about tariffs and softer overseas demand.
The Dow slid 0.3% on global growth concerns while yields on benchmark 10-year Treasury notes fell to an 11-month low. The dollar rose around 0.8%, capping gold's gains, as Forex traders shifted into the yen and buck for safety.
Supporting gold, oil jumped more than 2.6% to a to-week high after Saudi Arabia reported falling exports for December. OPEC and other large producers are supposed to enact production cuts beginning with the new year. Gold often trades in sympathy with oil as a hedge against energy-related inflation.
The other precious metals were also higher, with silver rising 0.7% while platinum and palladium picked up 0.4% and 0.1%, respectively.
At the Comex close: February gold gained $2.80 to $1,284.10; March silver added 11 cents, to $15.65; April platinum climbed $3.40 to $804; and March palladium edged up $1.60 to $1,198.80 an ounce.
Metal | Ask | Change | |
---|---|---|---|
Gold | $2,378.47 | $-10.29 | |
Silver | $28.40 | $0.12 | |
Platinum | $951.92 | $-15.84 | |
Palladium | $1,066.00 | $13.01 |