AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
5/15/2019: Gold edges up on mixed signals
Source: Bill Musgrave, American Gold Exchange
Austin — Gold edged up 0.1% to close near $1,298 as mixed US economic data and renewed trade optimism boosted both risk appetite and safe-haven demand.
News that the White House plans to postpone new tariffs on cars and auto parts for up to six months helped the Dow rally 0.5%, clawing further back from its trade-war induced selloff early in the week. Reports showing homebuilder confidence hitting a seven-month high and the Empire State manufacturing index climbing to a six-month high also energized risk appetite.
At the same time, downbeat data and lingering trade-war worries continued to fuel flights to safety. National industrial production fell in April, with most market groups worsening. And retail sales fell for the second time in three months, signaling caution among consumers. The Atlanta Fed lowered its real GDP growth forecast for the second quarter from 1.6% to 1.1%.
Adding to concerns about slowing global growth, China's economy lost momentum in April. Business investment, industrial production, and retail sales all fell short of forecasts, even before the imposition of higher tariffs by the US.
Creating headwinds for gold's rise, the dollar added 0.1% against major rivals as the yuan, pound, and euro all slide. A rising dollar pressures gold and other commodities by making them more expensive overseas.
US Treasury prices continued to rise, pushing yields lower, as signs of weakness in the world's two largest economies pushed investors toward safety. 10-year Treasury yields hit a six-week low while two-year yields dropped to a 15-month low.
The other precious metals were mostly lower, with platinum losing 1.3% while palladium dipped 10 cents and silver ended flat.
At the Comex close: June gold added $1.50, to $1,297.80; July silver was flat at $14.81; July platinum lost $11.40 to $847.70; and June palladium dipped 10 cents to $1,332.90 an ounce.
AGE Gold Commentary
Gold is climbing again, reacting to falling bond yields as the cost of money has become cheaper ... read more