AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

1/7/2019: Gold gains on weak data, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.3% to close just under $1,290 as the dollar fell further on weak US data and expectations that the Fed may pause rate hikes this year, boosting demand for alternative stores of value.

The ISM reported US service industries grew in December at the slowest pace in five months, weighed down by trade conflicts and difficulty in finding workers. The ISM manufacturing index, released last week, showed factory activity falling to the lowest level in more than two years.

The dollar dropped nearly 0.5% against major rivals as traders digested last week's dovish comments from Fed Chair Jerome Powell, who signaled that rate hikes might slow or end in 2019, depending on economic data. Consistent increases in interest rates have been a major support for the dollar over the past two years, pressuring gold in turn by making it more expensive in other currencies.

The other precious metals were mixed, with silver and platinum slipping 0.2% and 0.4%, respectively, while palladium added 0.5%.

At the Comex close: February gold gained $4.10 to $1,289.90; March silver dipped 3 cents to $15.76; April platinum eased $2.90 to $824.30; and March palladium rose $5.80 to $1,240.20, a new record close.