AGE Daily Gold Update

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

2/3/2020: Gold slips on China stimulus, ISM

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.4% to close under $1,583 as economic stimulus from the People's Bank of China and upbeat US factory data lifted stocks and the dollar, undercutting demand for alternative assets.

China announced it will inject nearly $175 billion into its economy to offset the economic shock from the coronavirus pandemic. In addition, the PBOC is cutting interest rates to ensure liquidity in financial markets that have been struggling with stock liquidations.

Here in the US, the ISM reported manufacturing expanded slightly in January after five straight months of contraction, with the index for new orders jumping the most since last May. The improvement reflects a de-escalation of the trade war between the US and China, which signed a limited trade agreement last month.

Wall Street rose on the stimulus and ISM data, with the Dow adding 0.7% and the S&P 500 nearly 1%. The tech-heavy Nasdaq, with many companies dependent on China-based supply chains, jumped 1.3%. Yields on benchmark 10-year Treasury notes edged higher with rising risk appetite.

The dollar rose 0.4% against major rivals as the yen and Swiss franc rolled back and the yuan tumbled on lower rates. A rising buck weighs on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals were mostly lower, with silver and palladium dropping 1.9% and 0.5% while outlier platinum climbed 1%.

At the Comex close: April gold slipped $5.50 to $1,582.40; March silver lost 34 cents to $17.67; April platinum gained $.8.80 to $971.80; and March palladium slid $8.80 to $2,214 an ounce.