AGE Daily Gold Update

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

11/18/2019: Gold bounces on trade pessimism

Source: Bill Musgrave, American Gold Exchange

Austin — Gold bounced 0.2% higher to close near $1,472 as new worries about a US-China trade deal undercut risk appetite and the dollar, lifting safe-haven assets. The metal had tested support near $1,456 earlier in the session before rebounding on the shift in sentiment.

CNBC reported that a government source in China said officials are pessimistic about reaching an agreement with Washington on the so-called phase one trade deal. In exchange for purchasing more US farm good, China is pushing for rollbacks in tariffs, to which President Trump has refused to commit.

US equity indexes pulled back from record highs to channel between small gains and losses on the downbeat trade news, while gold surged from intraday losses back into the black. Treasury yields also fell as investors shifted back toward safety.

The dollar dropped 0.2% against major rivals as safe-haven currencies like the yen and Swiss franc drew foreign exchange demand. A softer dollar boosts gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals were also higher, with silver rising 0.3% while edged up less than 0.1% and palladium climbed 1.3%.

At the Comex close: December gold gained $3.40 to $1,471.90; December silver rose 5 cents to $17; January platinum added 50 cents, to $895; and December palladium climbed $21.90 to $1,704.40 an ounce.