AGE Daily Gold Update

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

1/16/2020: Gold dips on data, trade deals

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.2% but held above $1,550 after upbeat data and trade optimism lifted stocks and the dollar, undercutting demand for alternative assets.

The Philadelphia Fed manufacturing index jumped to an eight-month high in January, with increases in new orders and shipments, and improvement in overall business outlook. The report follows a stronger Empire State survey for January, leading investors to be hopeful that the national ISM survey might rebound, too, after falling into contraction for five straight months.

Retail sales rose 0.3% in December, with most retailers enjoying a strong holiday business. For the year, retail sales rose 5.8%, slightly below the 30-year average.

One day after the signing of the Phase One trade pact between the US and China, the Senate approved the US-Mexico trade agreement, sending it to President Trump for signature.

The improved trade outlook combined with the upbeat data to bolster risk appetite, sending all three major US stock indexes to new record highs. The Dow and S&P 500 rose 0.9% while the Nasdaq added 1.1%.

The dollar also gained ground, adding 0.1% against major rivals as havens currencies like the yen and Swiss franc were modestly weaker. A rising dollar pressures gold and other commodities by making them more expensive overseas.

The other precious metals were mostly lower, with silver and platinum dropping 0.3% and 2.4%, respectively, while palladium added 0.6%.

At the Comex close: February gold dipped $3.50 to $1,550.50; March silver shed a nickel to $17.94; April platinum dropped $24.40 to $1,001.20; and March palladium picked up another $12.70 to $2,177.80 an ounce.