AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.
11/8/2019: Gold suffers 3.2% weekly decline
Source: Bill Musgrave, American Gold Exchange
Austin — Gold slid another 0.2% to close under $1,463 as optimism about a possible US-China trade agreement continued to undermine its safe-haven appeal. The metal lost 3.2% for the week, its biggest weekly decline in more than two years.
Trade relations took a positive turn this week after representative from China and the US said some tariffs may be lifted as part of the "phase one" agreement that is widely expected to be signed in December. The limited pact would remove at least some of the headwinds that have slowed growth in both economies.
Equity markets reacted strongly to the news, with all three major US indexes reaching record highs in yesterday's session as investors shed safe-haven assets in favor of risk. Gold fell 1.8%.
In today's session, sentiment continued to lean toward risk despite President Trump's statement earlier in the day that he has not agreed to lift tariffs on Chinese goods. The Dow dipped 0.1% while the Global Dow rose 0.2%.
The dollar rose 0.2% against major rivals as traders speculated that the Fed is now less likely to lower interest rates again this year. A stronger dollar pressures gold and other commodities priced in it for global trade by making them more expensive in overseas.
The other precious metals were lower for the day and week. Silver dropped 0.5% for a weekly loss of 6.8%. Platinum fell 2.3% today and 6.4% this week. Palladium shed 3.9 for a weekly loss of 4.2%.
At the Comex close: December slid $3.50 to $1,462.90; December silver dropped 8 cents to $16.95; January platinum lost $20.90 to $893.10; and December palladium shed $62.20 to $1,708.60 an ounce.
AGE Gold Commentary
After breaking out to a 6-year high of $1,560 in September, gold is consolidating gains of 14% for the year, its best since 2010 ... read more