AGE Daily Gold Update

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

3/11/2019: Gold slides on data, risk rally

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slid 0.6% to close under $1,292 as upbeat US economic data spurred risk appetite, dulling demand for safe havens.

US retail sales rose 0.2% in January, bouncing back from a revised 1.6% decline in December, the biggest in 10 years. With auto and gasoline sales factored out, January's rise was a more impressive 1.2%.

Business inventories increased 0.6% in December, according to a Commerce Department report delayed by the government shutdown in January. Rising inventories often imply an expanding economy. However, sales fell 1% for the month.

Wall Street rallied on the improved data, with the S&P 500 jumping 1.2% and Nasdaq 1.8%.

The dollar edged lower, pressured by dovish comments from Jerome Powell. Appearing on 60 Minutes, the Fed Chair said the economy is "in a good place" right now and reiterated his position that interest rates do not need to change until new data points the way. Consistent rate hikes over the past two years have been an ongoing source of support the for the buck.

Global central banks continued aggressive gold purchases in January, adding a net 35 tonnes to gold reserves, according to World Gold Council data. It was the strongest January on record and continues a bullish trend from 2018, when central banks purchased more than 651 tonnes, the most in more than 20 years. Buying was concentrated in emerging markets as a diversification away from the dollar.

The other precious metals were mostly lower, with silver and platinum dropping 0.5% and 0.1%, respectively, while palladium rose 1.6%.

At the Comex close: April gold slid $8.20 to $1,291.10; May silver dropped 8 cents to $15.27; April platinum dipped 80 cents to $816.80; and June palladium rose $23 to $1,482 an ounce.