AGE Daily Gold Update

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

1/8/2020: Gold slides as Iran fears ease

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slid 0.9% to hold above $1,560 as easing Middle East tensions and upbeat jobs data prompted traders to take profits from 10 straight days of gains. The metal remains near a seven-year high, having risen nearly 10% in the past 30 days.

Despite a missile strike by Iran against US bases in Iraq, fears of war abated today after President Trump announced that no one had been injured and Iran appeared to be "standing down." Iran's Foreign Minister said the attack was a "proportionate response" to the killing of General Qassem Suleimani, and that Iran does not "seek escalation or war."

Gold initially rocketed above $1,613 after the attack, only to recede after the conciliatory statements from both sides. US stock futures swung from a 1.7% tumble overnight to strong gains today as risk appetite returned. The Dow added 0.9% while the Nasdaq rose 1%.

The dollar picked up 0.3% against major rivals as safe-haven currencies like the yen and Swiss franc lost ground. A stronger dollar typically pressures gold and other commodities by making them more expensive overseas.

A strong employment report from ADP also spurred stocks and the dollar. Private sector employers added 202,000 jobs in December, handily beating forecasts.

The other precious metals were mostly lower, with silver and platinum falling 1.2% and 0.8%, respectively, while outlier palladium jumped another 2.3% on global supply concerns.

At the Comex close: February gold slid $14.10 to $1,560.20; March silver dropped 23 cents to $18.17; April platinum shed $7.80 to $963.80; and March palladium jumped $47.10 to $2,061.40 an ounce, another record.