AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
5/21/2019: Gold slips as trade tensions ease
Source: Bill Musgrave, American Gold Exchange
Austin — Gold slipped 0.3% to close under $1,274 after the US eased trade restrictions on a major Chinese telecom, fueling risk appetite and pressuring safe-haven assets.
After blocking Huwaei Technologies from buying US goods last week, adding fuel to the trade-war fire, the Commerce Department reversed its policy today. The tech giant will now be allowed to trade with US firms until mid-August. The change appears to be in response to concerns that US firms in the Huwaei supply chain would be damaged by the trade ban.
US technology shares rallied on the news, leading the Dow and S&P 500 higher by 0.8% while the Nasdaq rose 1%.
The dollar gained 0.1% against major rivals as rising risk appetite shifted forex traders out of safe-haven currencies like the yen. US Treasury yields also rose. A stronger dollar typically weighs on gold and other commodities by making them more expensive overseas.
The dollar's rise was capped, and gold's slide backstopped, after reports that existing-home sales fell 0.4% in April for a one-year drop of 4.4%.
The other precious metals were mostly lower, with silver and palladium dropping 0.2% and 1.4% while platinum rose 0.2%.
At the Comex close: June gold slid $4.10 to $1,273.20; July silver dropped 4 cents to $14.41; July platinum picked up $1.20 to $815.40; and June palladium lost $18.50 to $1,312.50 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