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


5/18/2018: Gold rises on geopolitics, trade

Source: Bill Musgrave, American Gold Exchange

Austin — Gold rose 0.2% to close above $1,291 as trade worries and geopolitical concerns boosted demand for safe-havens assets despite a stronger dollar. The metal still finished the week down 2.2%.

Uncertainty grew around the fate of NAFTA after President Trump's chief negotiator said yesterday that he is "nowhere near" a deal on a revised trade pact despite a hard deadline of May 17. The statement suggested that a new agreement will not be ready before midterm elections, extending the process and confusion into next year.

Talks this week between China and the US to avert a trade war hit a snag after Beijing denied a claim from the Trump team that China offered to cut its trade surplus by $200 billion. The President responded by saying China is "spoiled" and negotiations are unlikely to yield results.

In geopolitics, Italy slid closer towards a possible fiscal crisis after its new anti-euro government offered an economic plan to boost spending and slash taxes. Credit-ratings firms warned that the proposals could damage the nation's credit rating and elevate its borrowing costs, threatening its financial health.

Treasury prices rose in response to the conflicts as investors sought safe-havens, pushing down yields from their recent multi-year highs. Gold came under heavy pressure earlier this week when yields on benchmark 10-year Treasury notes rose to a seven-year high above 3.11%. Upbeat economic reports raised expectations for higher inflation, which reduces the value of fixed-income payments from bonds, spurring bondholders to sell.

The dollar rose 0.2%, capping gold's daily gain, as the euro sold off sharply for another session on worries over Italy. A rising dollar typically 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 lower for the day and week. Silver slid 0.2% for a weekly loss of 1.8%. Platinum dropped 0.6% today and 4.3% this week. Palladium shed 1.8% on the day and 2.5% on the week.

At the Comex close: June gold gained $1.90 to $1,291.30; July silver dipped 2 cents to $16.46; July platinum slid $5.60 to $886.50; and June palladium dropped $17.30 to $960.20 an ounce.


5/17/2018: Gold dips as dollar, yields climb

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.2% to close under $1,290, its lowest settlement this year, as upbeat data boosted the dollar and Treasury yields, cutting demand for alternative stores of value.

The Philly Fed manufacturing index jumped in May to its highest level in a year as new orders surged to a 45-year high. Following a solid reading for the New York Fed manufacturing index earlier this week, the data raises hopes for a turnaround in the ISM national index, which slipped last month.

Separately, the Conference Board said its index of leading economic indicators rose 0.4% in April, matching an upwardly-revised reading for March. The index has not fallen monthly in two years.

Yields on benchmark 10-year Treasury notes rose to a seven-year high above 3.11%. Upbeat economic reports are causing investors to anticipate sharply higher inflation, which reduces the value of fixed-income payments from bonds and spurs bondholders to sell, boosting yields.

The dollar rose 0.2%, with the ICE Dollar Index hovering new a 2018 high, as trader speculate that improving economic conditions and higher inflation may result in more aggressive rate hikes from the Fed. Weakness in the euro also supported the dollar as an anti-EU coalition government gains power in Italy, raising questions about its ongoing membership in the union.

Despite the dollar's surge over the past month, many analysts doubt its ability to break from its secular bear market for long. The exploding "twin deficits" — the federal budget deficit and current account deficit — are expected to create major headwinds for the economy and the buck as the government must borrow deeply to make ends meet.

The other precious metals were mixed, with silver and platinum adding 0.7% and 0.3%, respectively, while palladium dropped 0.5%.

At the Comex close: June gold dipped $2.10 to $1,289.40; July silver picked up 11 cents, to $16.48; July platinum rose$2.30 to $892.10; and June palladium dropped $5 to $977.50 an ounce.


5/16/2018: Gold edges up on global tension

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged up 0.1% to finish at $1,291.50, ending a three-session slide as geopolitical tension offset a rising dollar to boost demand for safe-haven assets.

North Korea threatened to call off the pending summit meeting with the US in Singapore next month if Washington insists upon shutting down its nuclear weapons program. The shift in sentiment came after new national security advisor John Bolton demanded a Libya-style denuclearization process in exchange for lifting economic sanctions.

Saber-rattling between President Trump and Kim Jong-un supported higher gold prices earlier this year as traders sought protection from further destabilization and possible military conflict in the region. Pyongyang's sudden volte-face, reaching out for conciliatory talks with the US in recent weeks, had drained some safe-haven premium out of the metal.

The dollar picked up 0.1% against major rivals, with almost all the gain coming against the euro as ongoing Brexit negotiations and the empowerment of vocal euroskeptics in Italy weighed on European sentiment. The populist 5 Star Movement and the hard-right League are preparing an Italian coalition government to push for a possible exit from the EU. Safe-haven currencies like the Swiss franc and Japanese yen rose along with gold on the uptick in global unease.

The other precious metals were mixed, with silver climbing 0.6% while platinum and palladium slid 0.8% and less than 0.1%, respectively.

At the Comex close: June gold gained $1.20 to $1,291.50; July silver rose 10 cents to $16.37; July platinum fell $8.40 to $889.80; and June palladium dipped 70 cents to $982.50 an ounce.


5/15/2018: Gold falls under $1,300

Source: Bill Musgrave, American Gold Exchange

Austin — Gold fell 2.1% to close just above $1,290 as upbeat economic reports boosted Treasury yields and the dollar, eroding demand for alternative stores of value. It was the metal's first close under $1,300 this year.

Retail sales rose 0.3% in April while March's rise was revised from 0.6% up to 0.8%, signaling that the economy is finding its footing after a soft start to the year. The Empire State manufacturing index rose in April, remaining comfortably in expansion although well-below its three-year high from last October. And homebuilder confidence rose in May, suggesting that the housing boom is still rolling.

Yields on benchmark 10-year Treasurys jumped to 3.07%, the highest since June 2011, as the upbeat data raised speculation that the Fed may hike interest rates more aggressively this year to head off inflation. Reports that the US and China are still "very far apart" on resolving trade tensions also supported higher yields. A trade war with China would likely drive up inflation, causing fixed-income assets to lose their attractiveness, leading bondholders to sell.

The dollar rallied along with yields, picking up nearly 0.7% against major rivals. A stronger dollar weighs on gold and other commodities by making them more expensive overseas. boosted inflation-expectations, prompting bondholders to sell, lowering prices and boosting yields.

The other precious metals were also sharply lower, with silver losing 2.3% while platinum and palladium dropped 1.9% and 1.3%, respectively.

At the Comex close: June gold fell $27.90 to $1,290.30; July silver slid 38 cents to $16.27; July platinum lost $17.70 to $897.20; and June palladium shed $12.50 to $983.20 an ounce.


5/14/2018: Gold dips on yields, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.2% to close under $1,319 as rising Treasury yields nudged the dollar higher, reducing demand for alternative assets.

Yields climbed on benchmark 10-year Treasury notes after Cleveland Fed President Loretta Mester said the central bank may have to push interest rates above 3% at some point if the economy heats up and inflation takes hold. Traders latched onto the comments, delivered in Paris, as they seek direction about future hikes.

The dollar gained 0.1%, reversing earlier loses behind the rising Treasury yields and bargain-hunting after last week's decline. A rising dollar weighs gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Gold was also pressured by an uptick in risk appetite after President Trump eased fears about trade conflicts with China. In an extraordinary move, the Commerce Department was ordered to expedite its review for the reinstatement of Chinese telecom ZTE, which has been struggling since it was banned from US business for violating sanctions against Iran in 2017. In the President's tweeted words, "too many jobs in China [have been] lost." The Dow added nearly 0.4% and he Global Dow picked up 0.2%.

The other precious metals were mixed, with silver and platinum falling 1.4% and 1.2%, respectively, while palladium added 1.1%.

At the Comex close: June gold dipped $2.50 to $1,318.20; July silver dropped 10 cents to $16.65; July platinum fell $11 to $914.90; and June palladium climbed $10.50 to $995.70 an ounce.


5/11/2018: Gold ends week 0.5% higher

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged down 0.1% today, closing under $1,321 despite a weaker dollar, as traders took profits from yesterday's upturn. But the metal finished the week with a 0.5% gain for its first weekly increase in a month as softer inflation clouded the Fed rate view.

The dollar slipped another 0.2% after soft economic data cast further clouded the rate view for the Federal Reserve. Overall consumer sentiment is flat this month while respondents are less optimistic about current circumstances because of higher current-year inflation expectations. Separately, import prices ticked up less than forecast, adding 0.3% with almost all attributable to higher oil prices.

Following yesterday's CPI report showing softer core inflation, today's data raised speculation that the Fed will be little-moved to raise interest rates more than three times this year. Fewer rate hikes will likely pressure the dollar by making it less attractive for forex traders seeking higher yield. In turn, a weaker dollar supports gold and other commodities by making them cheaper overseas.

The other precious metals were mixed on the day but higher for the week. Silver dipped a penny today bit gained 1.5% this week. Platinum edged up 0.1% for a weekly gain of 1.7%. Palladium lost 0.9% but still climbed 2.9% this week.

At the Comex close: June gold dipped $1.60 to $1,320.70; July silver edged down one to $16.75; July platinum added 80 cents, to $925.90; and June palladium dropped $8.70 to $985.20 an ounce.


5/10/2018: Gold jumps on CPI, oil

Source: Bill Musgrave, American Gold Exchange

Austin — Gold jumped 0.7% to close at a two-week high above $1,322 as the dollar fell on softer-than-expected consumer inflation and oil extended its rally, boosting demand for alternative stores of value.

The CPI rose 0.2% in April as Americans paid more for groceries and gasoline, pushing the 12-month rise to 2.5%, the most in 14 months. However, the more-closely watched core CPI, stripping out volatile food and energy costs, increased by a scant 0.1% for a 12-month rise of 2.1%, falling short of forecasts.

The dollar fell 0.5% against major rivals as traders speculated that the Federal Reserve will be less likely to raise interest rates four times this year if inflation moderates. Fewer rate hikes pressure the dollar by decreasing its attractiveness to foreign exchange investors seeking higher yield. A weaker dollar, in turn, lifts gold and other commodities priced in it for global trade by making them less expensive in other currencies.

Gold was also supported by a 0.4% rise in oil, which extended its rally to another multi-year peak above $71 per barrel. Pending US sanctions against Iran, along with escalating tensions in the Middle East after military action involving Iranian and Israeli forces in Syria, have heightened concerns about access to the region's oil production. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also higher, with silver climbing 1.3% while platinum and palladium rose 0.9% and 2.4%, respectively.

At the Comex close: June gold gained $9.30 to $1,322.30; July silver added 21 cents, to $16.76; July platinum climbed $8.50 to $925.10; and June palladium rose $23.30 to $993.90 an ounce.


5/9/2018: Gold inches lower on risk rally

Source: Bill Musgrave, American Gold Exchange

Austin — Gold was little-changed for a third session, inching 70 cents lower to close at $1,313, as surging oil prices sparked a rally in equities, neutralizing demand for alternative assets.

Oil jumped nearly 3% to reach another 3.5-year high above $70 as traders speculated that President Trump's decision to end the Iran nuclear agreement and impose sanctions will curtail supplies from the Middle East. In addition, the EIA reported domestic crude supplies fell 2.2 million barrels last week, further supporting higher prices.

Surging oil sparked a rally on Wall Street, driving energy shares 2.4% higher and pushing the S&P 500 up 1%. The rise in risk appetite pulled investors away from safe havens, offsetting the support gold received from traders hedging against energy-related inflation.

The dollar traded sideways, vacillating between tiny gains and losses, as traders struggled to gauge the likely fallout from the broken Iran deal. Weaker-than-expected wholesale inflation data, with the PPI adding just 0.1% in April, also weighed on the buck, raising uncertainty over the future course of rate hikes from the Fed.

The World Gold Council reported inflows into gold-based ETFs hit a 13-month high in April, fueled by wavering global equities and rising inflation.

The other precious metals finished higher, with silver picking up 0.4% while platinum and palladium added 0.5% and 0.8%, respectively.

At the Comex close: June gold inched 70 cents lower to $1,313; July silver added 7 cents, to $16.55; July platinum rose $4.50 to $916.60; and June palladium climbed $7.20 to $970.60 an ounce.


5/8/2018: Metals little changed by Iran pullout

Source: Bill Musgrave, American Gold Exchange

Austin — Gold edged slightly lower, dipping 40 cents to close under $1,314, as the dollar rose on news that the US has withdrawn from the multilateral nuclear agreement with Iran.

President Trump's decision to pull out of the Iran deal and impose "powerful sanctions" on Tehran helped push the dollar 0.4% higher to a new four-month high. While details on the sanctions remain obscure, traders speculate that they will help to drive up the price of oil, boost inflation, and prompt the Fed to accelerate the pace of rate hikes.

Notably, oil prices did not rise after the President's promise to impose "sanctions of the highest level" on Iran. In fact, crude slipped under $70 per barrel, losing around 1.8%. Gold often trades in sympathy with oil as a hedge against energy-related inflation.

The other precious metals were also little changed lower, with silver and platinum dipping 0.1% while palladium added 0.1%.

At the Comex close: June gold edged 40 cents lower to $1,313.70; July silver dipped 3 cents to $16.47; July platinum slipped $1.20 to $912.10; June palladium picked up $1.30 to $963.40 an ounce.


5/7/2018: Gold ends near-flat on oil, dollar

Source: Bill Musgrave, American Gold Exchange

Austin — Gold was nearly flat, inching down 60 cents to close just over $1,314, as the impact of rising oil prices was offset by a stronger dollar to leave demand little changed.

Crude oil surged another 1.2% to close above $70.50 per barrel, the highest level since November 2014, as OPEC production cuts and pending Iran sanctions combined to curb supplies. Tumbling Venezuelan output, which has fallen to a 30-year low because of its declining economy, also bid up prices. Often trading in sympathy with oil as a hedge against energy-related inflation, gold received support from oil's impressive rise.

However, the rising inflation-expectations that accompany expensive energy also boosted the dollar, which added 0.2% to hit a four-month high, as traders speculated that the Fed may be moved to accelerate rate hikes. Higher interest rates typically support the dollar by attracting foreign exchange investment seeking higher yields, in turn weighing on gold and other commodities priced in it for global trade by making them more expensive in other currencies.

The other precious metals were mixed, with silver slipping 0.2% while platinum and palladium picked up 0.3% and 0.5%, respectively.

At the Comex close: June gold dipped 60 cents to $1,314.10; July silver slipped 2 cents to $16.50; July platinum adder $3, to $913.30; and June palladium picked up $4.85 to $962.10 an ounce.

  

Metal Ask      Change
Gold $1,293.49           $0.00
Silver $16.51           $0.00
Platinum $890.17           $0.00
Palladium $976.37           $0.00
In US Dollars