AGE Daily Gold Update

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

1/18/2019: Gold drops on China trade news

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dropped 0.8% to close under $1,283 after news of a breakthrough in US-China trade negotiations boosted equities and the dollar, reducing demand for alternative assets. The metal lost 0.5% for the week, notching its first weekly decline since early December.

China has reportedly offered to reduce its trade surplus with the US to zero by 2024, buying more than $1 trillion in additional goods over six years. The potential deal, which has not been acknowledged by the US Treasury, would do nothing to redress the important US complaints about Chinese violations of intellectual property.

Wall Street soared on the prospect of a trade treaty, with the Dow and S&P 500 jumping 1.3% each. Treasury yields also rose as investors shifted away from safe havens in favor or risk assets. The dollar added 0.3% against major rivals, pressuring gold and other commodities priced in it for global trade by making them more expensive overseas.

The other precious metals were lower for the day and mixed for the week. Silver fell 0.9% for a weekly loss of 1.6%. Platinum lost 1.3% for the day and 1.6% for the week. Palladium surrendered 1% but still rose 4.4% this week.

At the Comex close: February lost $9.70 to $1,282.60; March silver slid 14 cents to $15.40; April platinum dropped $10.20 to $802.10; and March palladium fell $13.10 to $1,335.10 an ounce.