AGE Daily Gold Update

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

1/14/2020: Gold falls on trade optimism

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 0.4% to close under $1,545 after strong earnings from US banks and optimism from the pending trade deal with China reduced demand for haven assets.

With the US and China scheduled to sign a limited trade pact tomorrow, details began to emerge about the terms. China has agreed to purchase nearly $200 billion in additional manufactured goods, energy products, services, and farm goods over the next two years.

Equity markets cheered the news, driving the Dow over 29,000 early in the session and sapping interest away from assets like gold and silver. The rally was also fueled by stronger-than-expected earnings from JPMorgan and Citibank, which helped to fuel financials.

Risk appetite was checked later in the day, however, after the US announced it will keep tariffs in place on Chinese imports until after the 2020 presidential election. Stocks gave up their gains while gold pared some of its earlier losses, rising back to $1,547 in electronic trade after hours.

Consumer inflation rose 2.3% in 2019, the fastest rate since 2011, according to government reports. But inflation remains low by historical standards, leading most economists to speculate that the Fed will not raise interest rates in 2020.

The other precious metals were mixed, with silver falling 1.4% while platinum and palladium gained 0.5% and 2.1%, respectively.

At the Comex close: February gold dropped $6 to $1,544.60; March silver fell 25 cents to $17.74; April platinum added $5.20, to $987.30; and March palladium jumped $44.20 to $2,123.30 an ounce, yet another record high.