Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold slid 0.5% to close under $1,457 as growing optimism about a possible US-China trade deal fueled risk appetite, undercutting demand for safe-haven assets.

According to the Global Times, an official publication of China's communist party, the so-called "phase one" trade agreement between the world's two largest economies is near completion. The news comes after US national security adviser Robert O’Brien said on Saturday the agreement with may come by the end of the year.

The limited deal would roll back some tariffs on Chinese goods in exchange for the purchase of US agricultural products like soybeans. In addition, China will agree to raise the upper limit on fines for the violation of US intellectual property rights, a major sticking point.

Investors jumped prospect of a de-escalation in the 16-month trade war that has damaged the global economy. The S&P 500 rose 0.6% while the tech-heavy Nasdaq added 1.2% to new record highs.

The dollar rose to a one-week high against the safe-haven yen, pressuring gold and other commodities priced in dollars for global trade.

The other precious metals were mixed, with silver dropping 0.7% while platinum and palladium, more directly tied to industry, rose 0.8% and 1.6%, respectively.

At the Comex close: December gold slid $6.70 to $1,456.90; December silver lost 11 cents to $16.88 January platinum $7.80 to $900.40; and December palladium added $28.30, to $1,771.40 an ounce.