AGE Daily Gold Update

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

1/13/2020: Gold slides on risk rally

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slid 0.6% but held above $1,550 as optimism about Sino-US trade relations and de-escalating tensions in the Middle East boosted risk appetite, dulling demand for safe havens.

After 18 months of a bitter trade war, the US and China appear to be making strides toward meaningful reconciliation. The so-called phase one trade pact, under which China will buy an undisclosed amount of farm goods while the US eases tariffs, is set to be signed on Wednesday.

Adding to the good feeling, the Trump administration is reportedly planning to delist China as a currency manipulator, and both sides have agreed to meet twice annually to further reforms and ease conflicts. Meanwhile, the lack of new conflict between the US and Iran gave investors hope that serious military action may be avoided.

Treasury yields rose as investors shifted from safety to risk. The dollar held steady against major rivals.

Wall Street rose again on the prospect of better relations between the world's two largest national economies. The Dow added 0.3% while the S&P 500 and Nasdaq rose 0.6% and 1%, respectively. The S&P 500 and Nasdaq were both on track to hit new records. Strong Q4 earnings from tech giants Apple, Microsoft, Facebook and Amazon also fueled the rally.

The other precious metals were mostly lower, with silver and platinum slipping 0.6% and 0.4% while palladium added 0.3%.

At the Comex close: February gold slid $9.50 to $1,550.60; March silver dropped11 cents $18; April platinum dropped $3.90 to $982.10; and March palladium added $6.20, to at $2,079.10 an pounce, another record.