AGE Daily Gold Update

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

3/4/2019: Gold down, dollar up on trade hopes

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 0.9% to close at a 10-week low under $1,288 as the dollar rose on optimism over a possible US-China trade pact, dimming demand for alternative stores of value.

The world's two largest economies are apparently on the cusp of an agreement. China reportedly pledges to open some of its industries to foreign-ownership ventures, cut tariffs, and step-up purchases of US products. The US may remove the tariffs imposed over the past eight months, among other concessions. Hurdles remain but a formal agreement may be signed in late March, according the Wall Street Journal.

The dollar rose nearly 0.4% against major rivals as traders speculated that the trade deal will strengthen the US economy relative to Europe and Japan, boosting investment in US assets. A rising dollar typically pressures gold and other commodities priced in it for global trade by making them more expensive overseas.

The buck shook off more soft US data, with construction spending down sharply in December, according to a report delayed by the government shut down. Manufacturing, consumer spending, and home price gains have also posted worse-than-expected data in the past few days.

Wall Street surrendered early gains on the weak numbers, with the Dow falling to a loss of 1% and the Nasdaq 0.5%.

The other precious metals also fell, with silver dropping 1% while platinum and palladium lost 2.9% and 1.4%, respectively.

At the Comex close: April gold lost $11.70 to $1,287.50; May silver fell 15 cents to at $15.11; April platinum dropped $24.80 to $838.90; and June palladium shed $21 to $1,485.10 an ounce.