AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
5/10/2019: Gold sees daily, weekly rise on tariffs
Source: Bill Musgrave, American Gold Exchange
Austin — Gold rose 0.2% to close near $1,288, notching its fifth gain in six days, as the rekindling of trade-war conflict between China and the US pressured the dollar and boosted demand for alternative stores of value. The metal finished the week 0.5% higher.
US tariffs on $200 billion in Chinese imports jumped to 25% from 10% today, fueling fears that stagnant global growth may be tipped into contraction. Accusing Beijing of reneging on earlier agreements, President Trump shifted further into hardball tactics to extract concessions, threatening another $300 billion in imports with 25% levies.
US equities tumbled early in the session, only to claw back to minor gains after White House trade negotiators suggested today's talks were moving in the right direction. For the week, however, the Dow and S&P 500 are headed for losses of 2% and the tech-heavy Nasdaq is down 3%.
The dollar fell another 0.2% to a three-week low as traders shifted toward safe-haven currencies like the yen. A weaker dollar supports gold and other commodities by making them less expensive overseas.
Consumer inflation jumped 0.3%, as measured by the CPI, with the bulk of the increase coming from sharply higher gasoline and rent costs. The yearly cost of living rose to 2.1% from 2%.
The other precious metals were mostly higher for the day but lower for the week. Silver was virtually unchanged today but posted a weekly loss of 1.4%. Platinum rose 1.6% today but fell 1.1% this week. Palladium jumped 4.5% on the day but slid 1.3% on the week.
At the Comex close: June gold rose $2.60 to $1,287.80; July silver was virtually flat at $14.78; July platinum gained $14.20 to $864.70; and June palladium jumped $67.70 to $1,340.20 an ounce.
AGE Gold Commentary
Gold is climbing again, reacting to falling bond yields as the cost of money has become cheaper ... read more