AGE Daily Gold Update

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

9/13/2019: Gold falls on easing trade tensions

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 0.5% to close under $1,500 as easing trade tensions with China and upbeat US data boosted bond yields, undercutting demand for alternative assets. The metal saw a weekly loss of 1.1%.

China added several agricultural items to a list of products exempt from tariffs, helping to shift trade negotiations to a positive footing. The Trump administration said today it is considering an interim trade deal that will roll back tariffs for the first time if China commits to protecting intellectual property rights and buying more farm products.

Treasurys sold off, driving yields higher, as tensions with China are ratcheting down. Benchmark 10-year yields had their biggest weekly gain since November 2016. Rising bond yields often pressure gold and other non-yielding assets by increasing the opportunity cost of holding them.

Some upbeat US economic data also undercut demand for safe havens. Consumer sentiment rose modestly in September, according to the University of Michigan survey, rebounding from a three-year low in August. US retail sales rose 0.4% in August behind a sharp increase in demand for cars, trucks, and building supplies.

The other precious metals were down for the day and mixed for the week. Silver dropped 3.3% for a weekly loss of 3%. Platinum dipped less than 0.1% on the day for a loss of 0.7% this week. Palladium eased 0.2% but close the week up 3.6%.

At the Comex close: December gold fell $7.90 to $1,499.50; December silver lost 61 cents to $17.57; October platinum dipped 40 cents to $952.20; and December palladium edged down $3.90 to $1,600.90 an ounce.