AGE Daily Gold Update

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

11/19/2019: Gold rises for second session

Source: Bill Musgrave, American Gold Exchange

Austin — Gold added 0.2% to close above $1,474, as weak retail earnings undercut risk appetite, and rekindled trade-war tensions sparked demand for safe havens. It was the metal's second winning session in a row.

The Dow fell 0.3% and after downbeat forecasts from major retailers like Home Depot and Kohl's caused investors to worry that consumer spending, the engine of the economy, may be sputtering. The S&P 500 retail index lost more than 1% while the energy index, pressured by slowing global demand and the ongoing US-China trade war, dropped 1.4%.

Fueling new trade worries, President Trump threatened to "raise the tariffs even higher" if China does not sign on to the so-called phase one pact, due to be finalized next month. Washington's refusal to commit to lowering tariffs is a major impediment to Beijing's willingness to buy an additional $50 billion in US farm goods, according to officials.

Yields on benchmark 10-year Treasurys slipped again as investors tipped toward safety.

Gold's gains came despite sharply lower oil prices. WTI crude tumbled 2.6% on concerns about global supply gluts and reduced demand because of slower growth on ongoing trade conflicts. Gold often trades in sympathy with oil as a hedge against energy-related inflation. Its gains amidst an oil sell-off suggests solid underlying demand.

The other precious metals were also higher, with silver adding 0.7% while platinum and palladium rallied 1.9% each.

At the Comex close: December gold added $2.40, to $1,474.30; December silver rose 12 cents to $17.12; January platinum rose $17.30 to $912.30; and December palladium gained $33 to $1,737.40 an ounce.