Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

AustinGold fell 0.8% but held above $1,500 as optimism over a possible US-China trade deal sparked risk appetite and dulled demand for safe-haven assets.

President Trump tweeted today that he will meet Chinese Vice Premier Liu He on Friday for further trade negotiations. That the President, a self-styled closer, will participate signals the growing likelihood that some sort of deal with be announced.

Separately, Liu said China is willing to strike a deal to prevent further escalation of the damaging trade war. Tariffs on $250 billion in Chinese imports are schedule to rise to 30% next week.

Wall Street rallied on the upbeat remarks, with the Dow rising 0.5% and the Global Dow 1.3%. While a comprehensive trade agreement is not expected, even a limited compact would mark progress and diffuse tensions between the world's two largest economies.

Also supporting risk appetite, US consumer inflation and real earnings were both flat in September, easing the way for another rate cut from the Fed when it meets at the end of the month.

The dollar fell 0.3% against major rivals, especially the euro, while Treasury yields bounced higher on the decrease in risk aversion.

The other precious metals were mixed, with silver losing 1.2% while platinum and palladium both rose 1.3%.

At the Comex close: December gold fell $11.90 to $1,500.90; December silver dropped 21 cents to $17.60; January platinum gained $11.20 to $907.90; and December climbed $21.20 to $1,675.90 an ounce, a new record high.