Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold rose 0.2% to close above $1,483 as lingering uncertainty about the pending US-China trade deal pressured the dollar and boost demand for alternative assets.

China's commerce ministry released a statement today reiterating its demand for lower tariffs as a prerequisite to a limited trade pact. While negotiations are underway ahead of a new round of tariffs scheduled to kick in on December 15, Washington has yet to commit to lowering existing tariffs, let alone foregoing new ones.

Official attitudes about the so-called "phase one" deal seem to seesaw daily, gyrating financial markets in their wake. Early this week, President Trump suggested postponing talks until after the 2020 elections, sending Wall Street into a tailspin. By midweek both sides said talks are proceeding well, restoring risk appetite, only to have it undercut by further posturing.

The dollar fell 0.2% against major rivals led by the euro and UK pound after a spate of weak US data caused traders to speculate the Fed might have to lower interest again in coming months. It was the buck's fifth straight losing session.

Lower rates undermine the dollar by making it less attractive to Forex trades seeking yield. A weaker dollar, in turn, supports gold and other commodities by making them less expensive in other currencies.

The other precious metals were mixed, with silver adding 0.9% while platinum dipped 0.1% and palladium ended virtually flat.

At the Comex close: February gold gained $2.90 to $1,483.10; March silver added 14 cents, to $17.06; January platinum dipped $1.20 to $900.60; and March palladium edged up 30 cents to $1,845.70 an ounce.