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


9/11/2019: Gold reclaims $1,500 on rate view

Source: Bill Musgrave, American Gold Exchange

Austin — Gold gained 0.3% to close above $1,503 as bargain-hunters entered the market after yesterday's dip below the psychologically important $1,500 level. Expectations of monetary easing from the ECB and Fed also supported the metal despite upbeat trade news from China.

President Trump cranked up the pressure on the Federal Reserve, calling the central bankers "boneheads" and demanding interest rates be cut to zero or even into negative territory, to offset the slowdown generated, in large part, by trade conflicts with China and other partners. Investors were already anticipating a quarter-point reduction in benchmark rates when the FOMC meets next week.

The European Central Bank is also expected to reduce interest rates to stimulate the flagging Eurozone economy when it meets this week.

Rate cuts and other forms of monetary easing tend to devalue a nation's currency by increasing the amount of cheap money in its financial system. Investors often turn to gold as a proven long-term store of value to offset the risks associated with currency devaluation. In addition, low or negative real interest rates reduce the opportunity cost of holding the metal, which produces no yield on its own.

Gold's gains came despite an uptick in risk appetite after China announced that it will exempt some US good s from punitive tariffs, perhaps signaling a willingness to negotiate a larger trade deal. The Dow added 0.8% while the tech-heavy Nasdaq rose 1% on the trade optimism.

The other precious metals were mixed with silver dipping 0.1% while platinum and palladium rose 0.4% and 0.2%, respectively.

At the Comex close: December gained $4 to $1,503.20; December silver dipped 2 cents to $18.17; October platinum added $3.60, to $940.20; and December palladium picked up $2.70 to $1,556.80 an ounce.

  

Metal Ask      Change
Gold $2,218.30           Price Change Up Arrow $17.51
Silver $24.80           Price Change Down Arrow $-0.02
Platinum $909.38           Price Change Down Arrow $-0.98
Palladium $1,041.52           Price Change Up Arrow $12.93
In US Dollars