AGE Daily Gold Update

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

2/17/2020: Gold dips in electronic trade

Source: Bill Musgrave, American Gold Exchange

Austin — With US financial markets closed for the Presidents Day holiday, gold dipped around 0.1% to $1,584 in electronic trading as new stimulus measures from China lifted global stocks, tempering demand for safe havens. The metal was also pressured by profit-taking after last Friday's rise to a two a-week high above $1,586.

China's minister of finance announced yesterday that Beijing will cut interest rates on medium term loans to offset the economic impact of the coronavirus, known as COVID-19. The new monetary intervention follows the injection of $175 billion in liquidity into China's financial markets, announced in early February.

Stock markets in Europe and Asia cheered the move, with the Shanghai Composite Index leading the way with a surge of 2.3% as investors shifted into risk assets.

The spreading COVID-19 epidemic has now infected nearly 72,000 people and caused 1,775 deaths, with all but five fatalities occurring in China. Major factories have closed in China, Japan, South Korea, and elsewhere, disrupting global supply chains and taking an untold toll on global growth.

Underpinning the gold price, Brent crude oil extended last week's 5.2% rally, adding another 27 cents to $57.59 per barrel on expected production cuts from OPEC and Russia. Gold often trades in sympathy with oil as a hedge against energy-related inflation.