AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
11/7/2019: Gold plunges on tariff rollbacks
Source: Bill Musgrave, American Gold Exchange
Austin — Gold plunged 1.8% to close under $1,467 after the US and China agreed to roll back tariffs as part of a limited trade deal, stoking risk appetite and reducing demand for safe havens. It was the metal's lowest finish since early August.
Within their pending "phase one" trade détente, if it is signed, both sides would scale back the tariffs that have undermined global growth. The reductions would come in phases as negotiations continue for a comprehensive accord.
Equities jumped on the news, with all three major US indexes rising to new record highs. The Dow rose nearly 0.9% while the S&P 500 and Nasdaq added 0.5% and 0.6%, respectively.
US Treasury yields surged toward three-month highs as traders shed safe-haven assets like government bonds and gold. The dollar picked up 0.2% against major rivals, propelled by losses in the yen and Swiss franc, considered haven currencies.
The other precious metals were mixed, with silver and platinum shedding 3.3% and 1.9%, respectively, while palladium rose 1%.
At the Comex close: December gold fell $26.70 to $1,466.40; December silver lost 59 cents to $17.01; January platinum dropped $17.70 to $914; and December palladium added $16.70, to $1,777.80 an ounce.
AGE Gold Commentary
Gold is gathering momentum to begin its assault on the previous record high of $1,911 and then push above $2,000 ... read more