AGE Daily Gold Update

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

1/9/2020: Gold slides on trade deal hopes

Source: Bill Musgrave, American Gold Exchange

Austin — Gold pulled back for a second session, sliding 0.4% close under $1,555, as investors focused on the pending Sino-US trade deal, boosting risk appetite and undercutting haven demand.

Beijing announced today that Vice Premier Liu He, China's chief trade agent, will visit Washington next week to sign the so-called "phase one" trade pact. While details remain a mystery, China has apparently agreed to buy more agricultural products and protect US intellectual property while the US will reduce tariffs on Chinese imports.

Wall Street rallied to record highs on hopes that the limited agreement signals the beginning of the end of the trade war between the world's largest national economies. Tariffs have cost American companies $46 billion since February 2018, according to Commerce Department data. The Dow and Nasdaq both rose 0.8% while the S&P 500 added 0.6%.

The dollar rose 0.2% against major rivals as safe-haven currencies like the yen and Swiss franc receded for a second day with the apparent de-escalation of tensions in the Middle East. A stronger dollar weighs on gold and other commodities by making them more expensive overseas.

The other precious metals were mixed, with silver falling 1.3% while platinum rose 0.9% and palladium dipped less than 0.1%.

At the Comex close: February gold slid $5.90 to $1,554.30; March silver dropped 23 cents to $17.94; April platinum gained $8.20 to $972; and March palladium dipped $1 to $2,060.40 an ounce.