AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
5/14/2019: Gold slips on risk-asset rebound
Source: Bill Musgrave, American Gold Exchange
Austin — Gold slipped 0.4% to close under $1,297 as risk-appetite rebounded after yesterday's selloff in stocks, dulling demand for safe havens. Profit-taking also took its toll on the metal as traders cashed in on Monday's 1.2% rally.
US equity indexes bounced partway back as bargain-hunters entered the market on residual optimism that the escalating trade war between the US and China will be short-lived. The Dow added 1%, recapturing around half of yesterday's tumble, which had been driven by China's retaliatory imposition of 25% tariffs on $60 billion in US goods.
The dollar ended a four-session skid, adding 0.2% against major rivals as the safe-haven yen receded on returning risk-appetite and the euro fell on weak German economic data. A stronger dollar can weigh on gold and other commodities by making them more expensive in other currencies.
Gold's slide was backstopped by sharply higher oil prices after reports that Yemeni rebels used drones to attack Saudi oil pipelines and pumping stations, threatening supplies from OPEC's biggest producer. Rising oil typically supports gold as a hedge against energy-related inflation.
The other precious metals were higher, with silver adding 0.2% while platinum and palladium rose 0.5$ and 1.2%, respectively.
At the Comex close: June gold slid $5.50 to $1,296.30; July silver picked up 4 cents to $14.81; July platinum added $4.20, to $859.10; and June palladium rose $16.20 to $1,333 an ounce.
AGE Gold Commentary
Gold has been on a tear, breaking out above $1,500 and hitting a series of a new six-year highs as slowing global growth ... read more