AGE Daily Gold Update

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

2/11/2020: Gold slips on easing virus fears

Source: Bill Musgrave, American Gold Exchange

Austin — Gold slipped 0.6% to close just above $1,570 as concerns about the coronavirus eased and traders took profits from the metal's four-day winning streak.

While the global number of confirmed cases has risen above 43,000, the pace of new infections in China has slowed, leading to optimism that efforts to contain SARS-like epidemic may be succeeding. Factories in China are beginning the reopen and Beijing's senior medical advisor said today the outbreak may be over by April.

Global equity markets rose on the upbeat news, with the S&P 500 and Nasdaq adding around 0.2% to reach new record highs on hopes that the impact on global growth may be minimal. Yields on benchmark government bonds in the US and Europe also rose as investors shifted away from haven assets.

Adding to risk-on sentiment, Fed Chair Jerome Powell told Congress today that the US economy is "in a very good place, performing well." While he expects interest rates to remain at current levels, he admitted that it is too early to tell whether coronavirus fallout will lead to "a material reassessment of the outlook."

US household debt topped $14 in Q4, a new record, fueled by a surge in mortgage, student loan, and credit card debt. Meanwhile, the number of job openings dropped in December for a second month, reaching a two-year low, suggesting that the recent increase in hiring is unlikely to continue.

The other precious metals were mostly higher, with platinum and palladium rising 0.7% each while silver dropped 1.1%.

At the Comex close: April gold slid $9.40 to $1,570.10; March silver dropped 19 cents to $17.60; April platinum picked up $6.60 to $973.50; and March palladium rose $15.90 to $2,265.70 an ounce.